Apple Inc chief executive Tim Cook plans to visit Beijing later this month to meet high-level government officials at a time when the company is facing some setbacks in its most important overseas market, a source familiar with the matter said.
Cook has frequently traveled to China since taking the helm of Apple five years ago, but his latest visit comes during a critical period.
From weakening smartphone sales to the loss of an iPhone trademark dispute and the suspension of some of its online entertainment services, the US technology giant has been facing a flurry of problems in recent weeks in its second-largest market after the US.
That has raised concerns over Apple’s growth momentum after the company last week reported its first quarterly revenue decline in 13 years.
Last week, billionaire activist investor Carl Icahn said he had sold his entire stake in Apple, citing China’s economic slowdown and worries about whether the government could make it very difficult for Apple to conduct business.
During his China visit, Cook plans to meet senior government officials — including officials in charge of propaganda, the source said.
In recent weeks, the company has wandered into the crosshairs of the government’s ongoing campaign to control Web content and ensure localization of data storage.
Apple’s online book and film services were shut down in China last month, cutting off a potential source of income, following Beijing’s introduction of regulations in March imposing strict curbs on online publishing, particularly for foreign firms.
The company’s refusal to cooperate with the US authorities to provide source code to help them crack open the iPhone that was linked to a mass shooting in San Bernardino, California, also has raised skepticism among some Chinese officials.
In China, Apple has been asked by authorities in the past two years to hand over its source code, but the company refused, Apple’s top lawyer said.
Despite growing concerns over its China business — Apple reported its revenue from Greater China, which includes Hong Kong and Taiwan, dropped 26 percent last quarter — Cook has been optimistic.
“[We] may not have the wind at our backs that we once did, but it’s a lot more stable than what I think is the common view of it,” Cook said during the company’s earnings call last week. “We remain really optimistic on China.”
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