Apple’s China sales tumble highlights waning clout as local brands gain

Apple's weak China sales performance may have shocked investors, but customers and analysts have been noting the rising challenges the company faces in its third-largest market. Intensifying competition from domestic rivals, coupled with longer upgrade cycles as consumers spend more cautiously amid an economic slowdown, have stunted Apple's China growth, with sales there nosediving by 13% in the quarter ending in December to $20.8 billion and missing estimates of $23.5 billion. "Apple's sales decline in China is not surprising given the strong competition it faced from local brands like Huawei and Xiaomi," said Toby Zhu, an analyst with research group Canalys.