Apple’s success in China, despite market volatility will depend upon China’s ability to continue to afford the tech giants products, as China’s economy and market continues to lose momentum.
Apple ended its third quarter with 13 million sales of its latest product the IPhone 6S and IPhone 6S Plus within the first three days of its September 25th release. China is one of Apple’s key markets and has become increasingly important, with nearly “30% of its sales from China within the past two quarters.” “But China has become a source of problems for many big consumers lately.”
The cheapest IPhone 6S sells for 5,288 yuan ($832.52) on the Chinese Apple Store website. “So it’s worth wondering if that high price is an issue at a time when there are questions about the health of the Chinese consumer.” Apple also lost market share in China earlier this year to Chinese makers Xiaomi and Huawei.
“Still, Wall Street is not convinced that Apple will be able to overcome softness in China.” Apple’s shares fell nearly 3% Monday and remain in a so-called correction status. The stock is 14% below its all-time high.