Apple’s (AAPL.O), opens new tab weak China sales performance may have shocked investors, but customers and analysts have been noting the rising challenges the company faces in its third-largest market.
Intensifying competition from domestic rivals, coupled with longer upgrade cycles as consumers spend more cautiously amid an economic slowdown, have stunted Apple’s China growth, with sales there nosediving by 13% in the quarter ending in December to $20.8 billion and missing estimates of $23.5 billion.
At the same time, Chinese customers are holding on to handsets for longer because of the economic slowdown. Consultancy Counterpoint said in June that the replacement cycle was over 40 months…Read More