Still, some local players managed to grow against the trend and they may be eating into Apple's market share. The iPhone upgrade market has softened and this was among the factors causing a big impact on revenues. But the stock has tumbled since then and the company has now gained only 28% between November 8, 2016 and Thursday's closing price. However, the market in general has also suffered a decline.
Material from the Associated Press was used in this article.
The tech company's troubles send a message for companies doing business in China, or suppliers with customers that do business in China, that the effects of trade tensions and a slowing economy are rippling to consumers, curbing demand and spending.
The Institute for Supply Management said its index of USA manufacturing fell to its lowest level in two years, and new orders have fallen sharply since November. Apple's problems in China may continue deep into 2019.More news: Russian espionage arrest: 'My brother is being used as pawn'
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Global technology giant Apple Inc. has dropped its first quarter guidance after weaker than expected sales in China.
But stocks could bounce back. The government-reported GDP growth during the September quarter was the second lowest in the last 25 years. It has become Apple's third-largest market in recent years, mostly because of iPhone sales. This included pushing Apple trade-in program to reduce the cost of an iPhone to consumers.
Bond prices rose as investors sought safety, sending yields sharply lower. In Forte's view the company might not recover in the near term as long as the U.S. The company says its App Store, at least, was having a good holiday. But it ended the year down close to 7% - its worst performance since the 2008 financial crisis.
"Second, the strong USA dollar would create foreign exchange headwinds and Apple forecasted this would reduce its revenue growth by about 200 basis points as compared to the previous year". Apple said it has put more than 100 million new Apple devices into service over the past year.
CEO Tim Cook blamed the slump on a slowing economy in China, where Apple has also faced competition from Huawei and Xiaomi.