In November, Credit Suisse analysts noticed iPhone shipments in China dropping 35.4 percent in comparison to last year’s numbers. This was despite a slight increase in the Chinese smartphone market. Analysts speculate that the deadline on December 15 could launch more tariffs imposed on Apple products in lieu of the ongoing U.S.-China trade war.
Year over year in October, the Suisse analysts noted Chinese Apple sales declining 10.3 percent. This was the second month of percentage drop in double digits.
Analysts also speculate that the drop in sales was due to aggressive marketing from local competitors such as Chinese manufacturers. The rating of Apple remains neutral, with a price target of $221 per share in October.
Another market research firm, Canalys, also observed the decline of Apple in China in recent times. In the second quarter of 2019, shipments of the brand declined 14 percent. Its market share dropped to 5.8% from 6.4% in the same period last year.
Apple Remains Positive
Despite this news, analysts from Apple aren’t too bothered and remain optimistic about the performance of the latest iPhone line in China. Reportedly, there were wait times in the country of at least two to three weeks in September for some of the new iPhone models. Delivery times for these devices can indicate consumer demand.
In September, leading Apple analyst Ming-Chi Kuo says he expects the Chinese demand for the new iPhone models to beat expectations. He says that the demand for the iPhone 11 in the Chinese market is a lot stronger in the Chinese market than that of the U.S.
In fact, during the new iPhone line’s launch in September, Chinese consumers had to pay a marked-up price. For the iPhone 11, they paid 10.5 percent to 12.5 percent more. Whereas they paid 18.6 percent to 23 percent more for the iPhone 11 Pro and Pro Max if you compare these with prices in the U.S.
