While Apple chief executive Tim Cook blamed a weak Chinese economy for a downgrade in revenue guidance for the quarter ending December, analysts say he may be glossing over strategy missteps and the effects of fierce competition from fast-improving Chinese smartphone brands.
Attributing lacklustre sales to the economic downturn is one-sided as three of the top five smartphone brands, Huawei Technologies, Vivo and Xiaomi, all registered positive growth in the first three quarters of 2018, during which time shipments of Apple’s iPhone declined by about 12 per cent, Jia Mo, an analyst from research agency Canalys, said in a phone interview.