Apple iPhone sales see 30% drop in China: report
The iPhone 11 starts at $699
Apple's iPhones are not selling well in China.
According to a new report from financial firm Rosenblatt Securities, the media giant cut back production on Chinese phones as iPhone sales dropped 30 percent year-over-year.
This comes after iPhone shipments in China were also down — more than 35 percent last month, per Wall Street analysis — marking the second straight month of double-digit dips.
Plus, Apple's overall share of the smartphone market in China dropped from 7 percent to 5 percent last month as it faced stiff competition from Chinese tech brand Huawei, which makes its own line of smart devices and smartphones, including the new Huawei P30 Pro.
Analysts in the Rosenblatt report also point to the cheaper cost of Apple's standard iPhone 11 swaying consumers away from the more expensive iPhone 11 Pro and iPhone 11 Max.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAPL | APPLE INC. | 225.00 | -3.22 | -1.41% |
The iPhone 11 starts at $699, while the Pro and Max start at $999 and $1,099.
Rosenblatt analyst Jun Zhang predicted a scale down in production for the entire iPhone 11 line in Chinse markets to counter the low demand: "We expect more production cuts in March as Apple will see increasing headwinds from aggressive 5G smartphone launches in China and 5G service promotions in China begin in March," he wrote in the report.
Some analysts are also wary of the impact ongoing trade tension between the United States and China could have on sales. A tentative deal inked between the two countries last week saved Apple from a possible 15 percent tariff on its top iPhone models in China.
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While iPhone sales are struggling in China, Apple products haven't seen much of a hit in the United States. The company, whose stock hit consecutive records in October and November and surged 80 percent on the year, ranked at the top of investment-banking firm Evercore's internal list for the most-desired holiday gifts, spurred by AirPods and iPhones.
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Shares of the tech giant were hovering around $280 as of press time. Its stock is up more than 68 percent on the year and nearly 80 year-to-date.
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