According to an investment banking firm, the recent iPhone weekly sales drop in China might be a negative sign for the tech giant as its signature product is not affected by the economic downturn.
Bloomberg cited the New York-based firm Jefferies Group saying that iPhone sales in the Chinese market fell 27% last week, marking the third week of decline.
Three months before September, China’s sales of iPhones increased by 5.7%. With the weekly drop in last month’s sales, Apple may have lost 4% to 5% market share in the country.
In a note released on Sunday, the analyst at Jefferies Group, Edison Lee, wrote, “While iPhone used to be the bright spot, it has become less bright, and recent data points indicate a risk that it could potentially become the worst spot. This is an incremental negative trend for the smartphone market, but a particular concern for the iPhone supply chain.”
As reported by Bloomberg, citing market research firm Canalys, global smartphone shipments have declined for three consecutive quarters this year.
The tech giant has sought alternative locations to reduce its heavy dependence on China.
It began to assemble iPhone 14 in the production line in Chennai, India, as it shifted production from China. The move marks the first time Apple’s iPhones are made outside China.
In August, the company reportedly was in talks to make Apple Watch and MacBook in Vietnam to diversify production from China.
According to Reuters, Apple’s iPhone production could drop by as much as 30% in the next month at its major supplier’s manufacturing facility as workers’ discontent continues due to tightening COVID restrictions.