Apple CEO Tim Cook will visit China later in May to meet government officials. It comes just as the iPhone maker faces setbacks in its second largest market, as Fred Katayama reports.
Bound for Beijing. Reuters has learned Apple CEO Tim Cook plans to take another trip to China to meet senior government officials, including those in charge of propaganda. The trip comes just as Apple faces a series of setbacks in its second largest market. Apple didn't reply to Reuters' requests for comments. Its sales in China fell by 26 percent in the latest quarter. On Thursday, it lost a legal battle over the use its "iPhone" trademark on leather goods in that country. It's also facing challenges on the Internet. Beijing imposed strict curbs on online publishing in April, leading Apple to stop selling films and books online there. And in March, Apple's top lawyer said the company has been refusing Chinese authorities' requests to fork over its source code. That revelation came out in congressional testimony involving the case of the locked iPhone used by one of the San Bernardino shooters. News of the trip comes just one week after Apple reported its first quarterly revenue drop in 13 years and first decline in iPhone sales. Its shares have shed more than a quarter of their value over the last 12 months. Despite all that, Cook continues to express optimism over Apple's China business. But not Carl Icahn. The billionaire investor said last week that he had sold his whole stake in Apple.