From Fortune:

Apple is having a good quarter, with a 6% increase in iPhone sales to $69.7 billion and a record high in services business sales at $23.1 billion. Overall revenue grew to $119.6 billion.

Sales in Greater China, including China, Hong Kong, and Taiwan, declined by 13%, a larger decline than predicted, impacting Apple’s market valuation.

Shares dropped 2.9% after sales results were released, wiping $84 billion from the company’s market valuation. This happened despite a good day for the overall U.S. tech sector.

Apple’s chief financial officer warned that year-on-year comparisons for the upcoming quarter will be distorted due to a post-COVID surge in demand in early 2023. Apple expects sales to be roughly equal to last year after removing the impact of post-COVID spending.

Apple’s sales in Japan exceeded analyst expectations, with record high iPhone sales in South Korea and record December-quarter sales in emerging markets like India and Indonesia.

Apple attempted to boost iPhone 15 series sales in China with a rare discount. CEO Tim Cook called China “the most competitive smartphone market in the world.”

Huawei, Apple’s biggest Chinese competitor, saw a big increase in market share for the final quarter of 2023. Fellow Chinese brands Xiaomi and HONOR also increased their market share.

Chinese consumers are turning to new foldable designs developed by companies like Huawei and HONOR, with foldable phones becoming a very popular and fast-growing segment in China.

Consumers that would otherwise buy older iPhone models are instead turning to locally-made products in China, causing Apple to lose ground on the low-end of the market.



Read more: Apple loses $84B in value after weak China sales, revenue warning