How Apple Got Into Trouble in China - Page 2

For one thing, it may have underestimated what local rivals were up to
By Newser Editors,  Newser Staff
Posted Jan 3, 2019 12:16 PM CST

  • Price, patriotism: Reuters notes that iPhone became a status symbol after being introduced in China in 2009, but that's no longer the case. Citing comments on the microblog site Weibo, Reuters sees rising prices as the main factor in declining sales. “Only fools buy expensive iPhones. Sane people buy top quality, cheap Huawei,” said one popular comment on Weibo. “Support Chinese brands!”
  • Cook's letter: Read Cook's letter to investors here. In it, he says the company will make it easier for Chinese consumers to trade in their phones and to be able to purchase new ones on payment plans.
  • What US analysts say: CNBC rounds up reaction to the Apple earnings forecast from some of the nation's top analysts, and it's not pretty. "Biggest miss in years," said Jefferies Group in an investors' note. "Apple's business in China appears to be rapidly deteriorating." The company downgraded the stock from "buy" to "neutral," and it wasn't the only one to make such a move.
  • Not just Apple: All of this comes amid the backdrop of major friction between the US and Beijing, and the chair of the White House Council of Economic Advisers says more companies will be in a similar boat until the two nations work out a trade deal. “It’s not going to be just Apple,” Kevin Hassett told CNN, per Bloomberg. “There are a heck of a lot of US companies that have sales in China that are going to be watching their earnings being downgraded next year until we get a deal with China.”
(Read more Apple stories.)

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