JPMorgan Chase and Credit Suisse warn about Apple’s challenges in China
One of Apple’s (AAPL) biggest problems has been its plunging sales in China. The company’s revenue growth in Greater China has fallen ~21% year-over-year in the last two quarters.
JPMorgan Chase and Credit Suisse have pessimistic views on Apple’s problems in China. JPMorganChase has lowered its target price for the stock and slashed its iPhone shipment projections due to trade tensions fueling economic uncertainty, but has maintained its rating. Credit Suisse has meanwhile pointed out that while Apple’s China shipments improved in May, it still faces stiff competition from local players.
Apple is struggling in China’s maturing smartphone market
Apple is also struggling to grow in China because the country’s smartphone sector is maturing. Smartphone shipments in China fell steeply last year. Apart from Huawei, which has been growing at a fast clip, even local companies are struggling.
These reports detail just some of the challenges Apple faces in China. Although investors are worried about trade tensions affecting the tech giant’s revenue from the region even further, CEO Tim Cook doesn’t expect China to target Apple to retaliate in the trade war.