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>We believe the economic environment in China has been further impacted by rising trade tensions with the United States. As the climate of mounting uncertainty

by ummonk 8y ago

>We believe the economic environment in China has been further impacted by rising trade tensions with the United States. As the climate of mounting uncertainty weighed on financial markets, the effects appeared to reach consumers as well, with traffic to our retail stores and our channel partners in China declining as the quarter progressed. And market data has shown that the contraction in Greater China’s smartphone market has been particularly sharp. That sounds like Huawei fallout.

cbhl 8y ago
Weren't Chinese companies threatening to fire their employees last week for buying Apple? https://news.ycombinator.com/item?id=18760120 https://news.ycombinator.com/item?id=18760120
reasonablemann 8y ago
Sounds like economic contraction to me. I don't see how Huawei has anything to do with this.
cronix 8y ago
> That sounds like Huawei fallout. How would fallout from Huawei have anything to do with fewer people walking into Apple stores and buying a new Apple product? Have the prices risen or something? Are people afraid of being kidnapped if they walk into an Apple store? To me, it is just a lame hyperpolitical straw man excuse as to why they aren't selling more products. It has zero to do with China, imo. It has to do with people not NEEDING a new device, so they are upgrading (a lot) less frequently. Personally, I'm on about a 5 year upgrade cycle now. Apple will have a harder time going forward having increasing records year after year, because they mostly rely on new hardware sales. I think we're kind of coming to a Moores law type effect in terms of hardware perception (not design/capability). There just isn't enough of a perceivable or revolutionary innovative difference for the average person to justify purchasing a new multi $k machine year after year. For most people (non power users), they get no actual tangible benefit. An iPhone X will perform just as well for the vast majority of an average users applications as an iphone 8.
- sulam 8y ago
  China is showing all kinds of evidence of an economic slowdown (not a contraction, just not growing as fast). I am sure that Apple has very specific projections on a per-country and per-region basis. If they say that the problem is their China projections, I'm quite sure that's true. They would be facing a huge shareholder lawsuit otherwise, given this letter.
- ummonk 8y ago
  >How would fallout from Huawei have anything to do with fewer people walking into Apple stores and buying a new Apple product? Some Chinese people and organizations are reportedly boycotting US phones (which is mostly Apple phones) and purchasing Huawei phones instead.

by ummonk 8y ago

cbhl 8y ago

Weren't Chinese companies threatening to fire their employees last week for buying Apple? https://news.ycombinator.com/item?id=18760120 https://news.ycombinator.com/item?id=18760120

reasonablemann 8y ago

Sounds like economic contraction to me. I don't see how Huawei has anything to do with this.

cronix 8y ago

> That sounds like Huawei fallout. How would fallout from Huawei have anything to do with fewer people walking into Apple stores and buying a new Apple product? Have the prices risen or something? Are people afraid of being kidnapped if they walk into an Apple store? To me, it is just a lame hyperpolitical straw man excuse as to why they aren't selling more products. It has zero to do with China, imo. It has to do with people not NEEDING a new device, so they are upgrading (a lot) less frequently. Personally, I'm on about a 5 year upgrade cycle now. Apple will have a harder time going forward having increasing records year after year, because they mostly rely on new hardware sales. I think we're kind of coming to a Moores law type effect in terms of hardware perception (not design/capability). There just isn't enough of a perceivable or revolutionary innovative difference for the average person to justify purchasing a new multi $k machine year after year. For most people (non power users), they get no actual tangible benefit. An iPhone X will perform just as well for the vast majority of an average users applications as an iphone 8.

sulam 8y ago
China is showing all kinds of evidence of an economic slowdown (not a contraction, just not growing as fast). I am sure that Apple has very specific projections on a per-country and per-region basis. If they say that the problem is their China projections, I'm quite sure that's true. They would be facing a huge shareholder lawsuit otherwise, given this letter.
ummonk 8y ago
>How would fallout from Huawei have anything to do with fewer people walking into Apple stores and buying a new Apple product? Some Chinese people and organizations are reportedly boycotting US phones (which is mostly Apple phones) and purchasing Huawei phones instead.