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Pentagon accuses Alibaba, Baidu and BYD, three of China's biggest companies, of supporting the Chinese military

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China’s love affair with Apple surges as Tim Cook visits Beijing

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TIME
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May 12, 2015, 4:50 AM ET
Apple plans more stores in China
--FILE--Chinese customers wait outside an Apple Store to buy iPhone 6 and iPhone 6 Plus smartphones in Beijing, China, 17 October 2014. Apple Inc. plans to increase the number of its Apple-brand retail stores in Greater China to 40 from 15 within two years, Chief Executive Tim Cook said Thursday (23 October 2014). In an interview with Chinese news portal Sina.com, Mr. Cook said the Cupertino, Calif., gadget maker will also increase investment in China by an unspecified amount. “In the future China will become Apple’s biggest revenue contributor,” he said, according to Sina.com. “It’s just a matter of time.” An Apple spokeswoman confirmed the remarks. Greater China includes Hong Kong and Taiwan. China is Apple’s third-largest market after the U.S. and Europe and is an important growth driver for the company. Its revenue growth in Greater China, however, slowed sharply in the latest quarter ahead of the release of its new iPhone, which was delayed by regulators in China until this month.Photograph by Imaginechina/AP

This article is published in partnership with Time.com. The original version can be found here.

By Hannah Beech, @hkbeech

China’s smartphone market may have contracted 4% year on year in the first three months of 2015, according to tech data firm IDC, but Apple isn’t feeling the pain. During that same period, the California tech giant’s revenues in greater China expanded by 71% to $16.8 billion, outpacing Apple’s overall global growth of 27.2%. Apple is now the largest smartphone vendor in China — the pole position that Samsung Electronics Co. (SSNLF) held a year ago — with the iPhone 6 and 6 Plus driving local sales.

Apple’s CEO Tim Cook traveled to China to celebrate Chinese consumers who have snapped up more iPhones this year than their American counterparts. On Monday, Cook joined Weibo, the Twitter-like social-media service that has succeeded in part because Twitter is banned from China. While Weibo is battling other popular domestic social-media networks like WeChat, the arrival of an Apple CEO still commanded plenty of attention. Within 3.5 hours of joining Weibo, Cook had attracted 300,000 followers. (By Tuesday morning, he had around 400,000 followers.)

Cook’s inaugural Weibo message? “Hello China! Happy to be back in Beijing, announcing innovative environmental programs.” Apple has endured criticism for the way some of its China-based suppliers have treated their workers, as well as for the high price of its handsets in China. But Cook was in town to promote Apple’s efforts to manage forests in partnership with WWF.

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