On Thursday evening, Apple CEO Tim Cook attended the grand opening of the Apple Shanghai Jing’an store and engaged with a crowd of Apple fans who had flocked to the downtown location. The retail store is the second-largest Apple Store worldwide and the largest in Asia. The Jing’an store’s opening was part of a two-day visit to Shanghai from Cook, which comes amid falling iPhone sales in China. 

Why it matters: Cook’s presence at the opening of the Shanghai store was intended to demonstrate the brand’s commitment to the China market.  The country also plays a crucial role in Apple’s supply chain and manufacturing operations.

Details: During his two days in Shanghai, Apple CEO Cook shared various PR activities on the Twitter-like social media platform Weibo, where “Tim Cook encounters actor Zheng Kai” trended as a hot topic on Wednesday. 

• Cook wrote on his Weibo post, “Nonghao Shanghai! [Nonghao is hello in Shanghainese] Spent the morning walking the Bund with Zheng Kai and enjoying a classic Shanghai breakfast. I’m always so happy to be back in this remarkable city.”
• Cook shared another photo on Weibo on Wednesday afternoon showing him being briefed on gaming products by Papergames staff and accompanied by Papergames CEO Yao Runhao. Known for mobile hits such as dress-up role-playing game Shining Nikki and female-centered romance game Mr. Love: Queen’s Choice, the company is a major developer on Apple’s App Store. 
• Later, Cook met with BYD CEO Wang Chuanfu at Apple’s Shanghai headquarters. During the visit, Apple suppliers BYD Electronics, Lens Technology, and Everwin Precision Technology exhibited advanced manufacturing technologies and manufactured components for Apple products. “BYD, Lens, and Everwin are great examples of companies who are pushing the boundaries of what’s possible every day and we’re excited for the opportunities ahead,” Cook said on Weibo.
• On Thursday morning, Cook visited Shanghai Jiao Tong University’s Xuhui campus to communicate with student programmers. He then posted about meeting winners of the App Contest and Swift Student Challenge, highlighting their use of coding to address challenges and preserve traditional culture. The Swift Student Challenge from Apple is an annual event that invites student developers to showcase their coding skills by utilizing Swift programming. The Swift Student Challenge 2024 introduces a new category to honor 50 outstanding winners who submit exceptional works, according to Apple.
• On Thursday evening, Cook opened the Shanghai Apple Jing’an store, as a crowd of customers gathered in front of the retail space, eager to be among the first to enter. With over 30 years of history in China, Apple has created over five million job opportunities through direct employment, supply chain business, and iOS app related businesses, according to data provided by the company to China Economic Weekly.

Context: In 2023, Apple achieved its highest-ever market share of 17.3% and secured the top spot in the Chinese smartphone market for the first time, according to market intelligence firm IDC. The report revealed that China’s smartphone shipments totaled 271.3 million units in 2023, a 5.0% year-on-year decline compared to 2022, marking the lowest volume in a decade due to sluggish economic recovery and weak consumer sentiment.

• However, in the first six weeks of 2024, China witnessed double-digit declines in smartphone sales for Apple, Oppo, and Vivo, according to Counterpoint Research. During these six weeks, Apple’s iPhone sales in China declined by 24% year-on-year, ranking fourth among Chinese smartphone suppliers.