Last week, Apple slashed its guidance on revenue, partly blaming the revision on a weakening economy in China and lower-than-expected iPhone revenue in the Greater China region. The move roiled markets as investors worried about a slowdown in the world’s second-largest economy amid Beijing’s ongoing trade fight with Washington.
Analysts said that many Apple suppliers had been telegraphing the issue of weak iPhone demand since last year.
Apple, along with its rivals including Samsung, finds itself in a highly saturated smartphone market where growth is falling. According to the International Data Corporation, global smartphone shipments fell 6 percent in the third-quarter of 2018 — that was the fourth consecutive quarter of year-over-year declines, which raised concerns about the market’s future.
Some analysts have said that smartphones from various companies have become so similar in their features and functionality that customers no longer see tangible differences. The devices are also not as innovative as they used to be.