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IPhone's sales in China continue to weaken in Q2

By Zhu Lingqing (chinadaily.com.cn) Updated: 2016-07-12 16:49

IPhone's sales in China continue to weaken in Q2

Chinese customers try out the iPhone SE at an Apple Store in Shanghai, China, April 13, 2016. [Photo/IC]

Apple Inc's Greater China revenue is projected to be between $7.7 billion and $10.3 billion in the fiscal third quarter this year (as of the end of June), falling between 43 percent year-on-year and 22 percent year-on-year, according to a report by T.H. Capital, a domestic research and investment advisory company.

As Apple's Greater China sales in the second quarter (fiscal third quarter) are expected to account for 24.7 percent of Apple's world sales, the same in proportion as last quarter, T.H. Capital says it can be weaker than Wall Street's expectation.

While iPhone's online sales increased 43 percent year-on-year in the June quarter, T.H. Capital suggests the mobile phone's online sales actually could take market share from offline sales in the June quarter when e-commerce platforms launched their promotions, such as JD.com Inc's "618" online shopping festival, and Alibaba Group Holding Ltd and Suning Commerce Group's Mobile Phone Festival.

Using last year's online sales' gross merchandise value and the relationship between online and offline salesas references, T.H. Capital predicts that Apple's Greater China sales in the second quarter will be $10.3 billion, or a 22 percent year-on-year decline in high expectations.

In addition, adopting Baidu Inc's search index, which is one quarter and 2 weeks ahead of Apple's performance and having correlation with it, as an indicator, T.H. Capital projects Apple's Greater China sales can be $7.6 billion or a 42 percent year-on-year decline in low expectations.

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