Apple Stock Drops in China

Julia Booth, iReporter

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In the last quarter of 2018, global smartphone sales fell for the first time ever. The global
market for smartphones appears to be shrinking, hurting some of the biggest companies such
as Apple, Samsung, and LG. For the first annual decline in the smartphone market ever, the
industry declined around 1-3% based on predictions.
The biggest contributor towards this drop was the China, which houses the world’s biggest
smartphone market. The Chinese market was estimated to have shrunk by nearly 9% in 2018
due to several economy issues and problems with trade with the United States. During the
holiday sale numbers, Apple reported that their stock dropped up to 8% in after-hours trading.
Supposedly China now promotes a number of “homegrown” smartphone makers such as
Huawei and Xiaomi, which compete with the IPhone’s capabilities but are much cheaper. This
will continue to hurt apple as China makes up about 15% of the company’s global revenues and
according to a New York-based managing director of equity research at broker Wedbush
securities, China is “the heart and lungs of the Apple growth story”.
This trouble with the slump in China’s economy could also prove to cause problems for other
companies like General Motors, Volkswagen, and Starbucks.

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