The complex interplay between global supply chains, corporate performance, and international diplomacy was on full display this week.
Apple reported a surprise revenue drop in its crucial China market, blaming supply disruptions for the new iPhone.
In the wake of a landmark trade truce with the US, Chinese leader Xi Jinping issued a powerful call to protect those very supply chains.
Meanwhile, in the aviation sector, Air India is seeking a massive financial lifeline from its owners as it grapples with the aftermath of a recent tragedy and intense market competition.
Here’s your one-stop stand to catch up on all the headlines you may have missed.
Apple blames supply chain for surprise China sales miss
Apple Inc. reported a significant and unexpected decline in its third-quarter revenue from China, a rare stumble in one of its most important markets.
Revenue for the region dipped nearly 4% to $14.5 billion, falling well short of the $16.4 billion analysts had projected. The result marks only the second quarter of growth for Apple in China over the past two years.
However, CEO Tim Cook expressed confidence in a rebound, attributing the poor performance to production issues rather than weak demand.
“It was basically supply constraints that drove the results,” Cook said on a conference call. “We’re thrilled with what we’re seeing right now.”
The shortfall comes as Beijing struggles to ignite consumer spending and as global tech supply chains remain under pressure from trade tensions.
Xi warns against ‘breaking supply chains’ after Trump truce
In his first public remarks following a landmark meeting with US President Donald Trump, Chinese President Xi Jinping delivered a strong warning against protectionism.
Speaking at the APEC summit in South Korea, Xi called on world leaders to “jointly maintain stable and smooth industrial and supply chains.”
His appeal for cooperation comes just after securing a one-year truce in the trade dispute with Washington.
“We must adhere to the principle of joining hands rather than letting go, and extending rather than breaking supply chains,” the Chinese leader stated, in a clear reference to the recent tensions.
The audience included US Treasury Secretary Scott Bessent, who has been a key figure in the trade negotiations.
Air India seeks $1.1 billion from owners after deadly crash
India’s national carrier, Air India, is seeking an urgent financial infusion of at least $1.1 billion from its owners, Tata Sons Pvt. and Singapore Airlines Ltd.
The request for funds comes as the unprofitable airline contends with the severe operational and financial fallout from a recent deadly plane crash, among other challenges.
According to a Bloomberg report that cited people familiar with the matter, the capital is needed for a major overhaul of the airline’s systems and to develop in-house engineering and maintenance capabilities.
The request highlights the immense difficulties of operating in India’s hyper-competitive aviation market, where only one major domestic carrier, IndiGo, is currently profitable.
The funding, which would be proportional to Tata’s 74.9% ownership stake, could be provided as either an interest-free loan or a fresh equity injection.
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