>> It used to be a status symbol in China. Flashing around a shiny new iPhone. But that might not be the case anymore. Apple stopped plunging roughly 10% Thursday its biggest single daily fall in six years. The stock beat down comes one day after the iPhone maker Took the rare step of cutting it's quarterly sales forecast.
CEO Tim Cook blamed China, he pointed to slowing iPhone sales in the country with the economies being dragged down by China's trade war with the US. But analysts are pointing to something else A $1000 plus price tag, Reuters Cate Cadell explains.>> It's a bit of a mixture between both an Apple problem and a China problem.
In terms of the number of smart phones that Apple actually sells here they've never really out stripped all the rivals but, they really have going for them here Is that they have a high price point, and they've kind of owned that premium market in the past. But what's happening now is that under all of this sort of macroeconomic pressure, lots are consumers are deciding that they just can't afford that top $2,000 smartphone.
And analyst is saying that Apple sort of took a bit of a gamble by increasing the price of this smartphone hoping, you know, that even if consumers are buying less smartphones that they'll be paying more for them compared to Xiaomi or Huawei who don't take it as big of a margin.
And what analysts are saying is that perhaps this move has backfired.>> As one Chinese social media user put it, quote, the bubble of iPhone's luxury branding has already burst. That, along with China's slowing market, and a trade war have all led to what analysts have called. A perfect storm.
>> I mean lots of consumers still really like Apple in China. The fact that it has its own operating system is a really big feature for lots of users here. So I don't think we're gonna see a situation where Apple really drops out of the market. Like we've seen some other phones do.
But what this is is that their path going forward is just not gonna be as easy as it was before. And they're gonna increasingly have to cater to the Chinese market to sort of maintain sales against competitors like Huawei.>> Apple lowered its sales forecast for the crucial holiday shopping season to 80 four billion dollars below analyst estimate of about 92 billion dollars.
That's the first time Apple cut its quarterly sales forecast since the iPhone was launched in 2007.