Weakening Chinese demand was apparent in Apple’s fourth-quarter sales, with China revenues unexpectedly down 13 per cent from a year earlier. Chief executive Tim Cook last month told analysts he remained “very optimistic about China over the long term” and blamed part of the decline on a stronger dollar.
He has spent years tying the company’s fortunes to China and built a supply chain that is heavily dependent on factories in Shenzhen and Zhengzhou — although the company is now trying to diversify manufacturing and production to countries such as India.
Facing a tougher market, Apple and its retailers have begun discounting. “Sales growth is increasingly reliant on promotional activities and price cuts,” said Ivan Lam, a senior analyst at Counterpoint…Read More