It’s only January 2019, but things aren’t looking so good for technology giant Apple Inc.
The California-based company is facing a lot of challenges this year, specifically in the Chinese market where Apple’s up against other similarly giant rivals, Samsung and Huawei, amidst other issues such as court battles and trade war talks.
Tim Cook, Apple’s chief executive, expressed his concerns regarding the current situation of the company. “We did not foresee the magnitude of the economic deceleration, particularly in Greater China,” he shares. The weakening of Apple’s sales in China caused a surprising drop in its global sales forecast, leading to a ripple effect in the global markets for Apple’s stock.
According to Reuters, Chinese shoppers pointed out the high price tag on Apple’s flagship phones are the main reason why its products are not doing so well in China. Compared to Huawei, Xiaomi, Vivo, and even Samsung phones, Apple places its phones on a much higher price range for similar or even the same specs.
Another issue that Apple is facing in China is the current 5G technology that is starting to boom over there, which Apple devices won’t be ready for until 2020. This means that it’s lagging behind local rival phone brands which are more varied and much cheaper to boot. How Apple will resolve these issues will certainly be interesting and we, like the rest of the world, will make sure to stand by and watch.
