Apple (NASDAQ:AAPL) CEO Tim Cook’s recent visit to Shanghai could be a sign that the iPhone maker is looking to “double down on China strategy in a key moment,” analysts at Wedbush said in a Monday note,
“The narrative around Apple and Cook over the past year has been around diversifying the supply chain outside of China with geopolitical tensions the black cloud over Cupertino,” analysts said.
“To the contrary, we have discussed that Apple is actually increasing its investments and retail footprint in China over the past year and to this point Cook has been in China since last week on an important visit to lay the groundwork on Apple's future in China,” they added.
Last week, Cook opened Apple's largest flagship store globally in Shanghai, marking the company's 57th outlet in China and the eighth in Shanghai.
Amid concerns about the manufacturing supply chain moving from China to countries like India and Vietnam, Cook's visit also included meetings with key Chinese suppliers.
His trip comes amid a challenging period as Apple faces headwinds in China due to a government ban on iPhones in certain agencies, competition from Huawei, and a weaker economic climate, impacting iPhone 15 sales.
With China being a crucial market for Apple, turning these challenges into opportunities is vital for the upcoming iPhone 16 launch, analysts at Wedbush commented.
Cook also attended the China Development Forum in Beijing, signaling a potential easing of the regulatory environment and fostering a more favorable climate for foreign companies.
“Clearly Beijing sees the writing on the wall as its heightened regulatory environment and general uncertainty has caused foreign investments to leave the country with this conference viewed as an olive branch to key companies like Apple that the tide will start to change,” analysts said.