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Why the Chinese have stopped spending

26 14 38

APPLE stock plummeted last week, hitting its lowest price level since July 2017 on Thursday, a day after slashing revenue projections in a rare acknowledgement of suffering sales. The prime culprit for the estimated shortfall was Chinese consumers – or lack thereof.

According to CNBC, the company’s losses push Apple’s market valuation below US$700 billion, placing it behind the market cap of Alphabet to become the fourth most valuable publicly traded US company — down from the top spot just two months ago.

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Apple blamed a variety of factors for the lower sales forecast – such as people not upgrading to the new iPhone – but the blame was laid predominantly at a lack of sales in Greater China, its third biggest market after the US and Europe.

Until recently, the Chinese market was seen as a reliable spending hub, one that many global companies put their faith – and billions of dollars of investment – in the country’s continued purchasing power.

Stock numbers for Apple are........

© Asian Correspondent