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Business

Apple's China revenue dives as iPhone sales fall

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Opening sequence

Business

Apple's China revenue dives as iPhone sales fall

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COMING UP:Apple's China revenue dives as iPhone sales fall

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Transcript

00:00:02
>> The Apple factor has been slipping for a while in China, but on Tuesday we got a glimpse of just how bad things are getting. Q3 sales down a third from last year, the worst decline anywhere in the world. Costing China its title as Apple's most important market outside the US.
00:00:17
It's well known that the Chinese economy is slowing, but as Brenda Go reports from Shanghai, there's a lot more to Apple's problems than that.>> People say that the iPhone is becoming less of a status symbol in China, it's becoming more of a commodity that people are less likely to wanna brag about.
00:00:32
What's more popular as status symbols nowadays, are things like holidays or lifestyle experiences. So rather than talk about your iPhone, they'd rather talk about their holiday doings, exotic location that none of their friends have been to.>> Chinese consumers may be harder to impress than before, but there's also the ever growing problem of competition in a market packed with cheaper local brands
00:00:51
>> The top selling handset in China isn't Apple, it's more like Huawei and Xiaomi, and these are more popular because they have a better app ecosystem. And also they have shorter product cycles, they come out with new products that the fickle change consumer likes. And also they come out with a lot of new features and games, which attracts them to a much broader population, as well as the price of course.
00:01:15
>> To make up for lost ground, Apple's trying to boost services like music in the App Store. But that's easier said than done after Beijing shut down the iBooks and iTunes movie stores in April.. The next generation iPhone is expected to launch this fall, potentially with a dual camera feature.
00:01:31
That may sound cool to tech fans around the world, but some of Apple's cheaper rivals in China have already rolled it out.