While Apple’s CEO Tim Cook blamed poor sales of product in China prompting a warning that fourth quarter sales were less than ideal, there is more to the story than meets the eye.
Undoubtedly a decline in Chinese sales is partly due to a flagging economy a slowdown in sales of smartphones generally, and a trade war with the US, another uncomfortable truth that Apple may not want to face is the rise and rise of rival devices that offer far more value for money than its over priced iPhone.
Bogey-man Huawei, for example, now holds second place in market share globally, while other Chinese companies like Xiaomi and Oppo are nibbling away at market share too.
Analysts and people that spend money on smartphones are agreed that Apple’s last year iPhone rollout had all the explosive effect of a damp squid, while phones from its Chinese rivals are not only less expensive but also offer far better features.
And it doesn’t look like Apple is suddenly going to pull a magical cat out of its Californian bag, while relying on manufacture and assembly of iPhones is largely dominated by Chinese manufacturers.
News of the shortfall in sales saw share prices of its Chinese suppliers fall too, as well as prompting a more general decline in tech companies’ market valuation.
