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Apple’s troubles in China have no short-term solution, two banks say


Posted: June 20 2019
Updated: June 19, 2019

by Steve

Since the end of last year, then the revelations concerning the difficulties of the apple brand to sell its iPhone the situation in the Chinese market Apple seems very complicated. Local builders are far more price aggressive and the Chinese are far more chauvinistic than any other people: they prefer to buy Huawei, Xiaomi, One More and others Oppo. Another reason cited: the trade war that confronts China and the United States. Trump and Xi Jinping are indeed in a kind of economic cold war. The arrest of Mang Wanzhou, chief financial officer of Huawei and daughter of its founder, did nothing to help the case.

All these reasons prevent the banks JPMorgan and Credit Suisse from being optimistic. According to them, Apple has no short-term solution to reclaim the Chinese market. According to Credit Suisse, the trade war is a disaster for Apple. Worse yet: Chinese high-end smartphones, which the people of the Empire love so much, are cheaper than iPhones. The Apple ecosystem, less present in China, is also less popular.

JPMorgan revises slightly downward its sales estimates for the iPhone, and judges that Apple can not do what is necessary to attract the Chinese. Estimates go from 185 million to 183 million.