Apple CEO Tim Cook said in the earnings call he doesn't think China is as weak as everyone says. "In China 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. So we remain really optimistic on China." He noted that it opened seven stores in China last quarter, taking its total to 35, and will open five more this quarter. Cook talked up its services businesses, which expanded 20 per cent last quarter and represented the company's second largest revenue-generating category in Q2. But with Apple suspending its iBooks and iTunes Movies services in China last week after the country's video and publishing regulator imposed stricter guidelines on online content, its growth prospect in services could be severely dampened. Beyond China The company faced declining sales across the Asia-Pacific region, with revenue falling 25 per cent in Asia Pacific (ex China and Japan) to $3.16 billion.