Apple has suffered a major drop in iPad sales in China for the last quarter, according to analysts, with local rival Huawei overtaking Apple as the biggest tablet brand in the country, despite an overall slump in tablet sales for the period.
The same sources who were wildly wrong about Apple's inability to sell iPhone X were also way off base earlier this year in fantasizing dire impacts COVID-19 would have on Apple's global supply chain, its presence in China, and the effect that retail closures and an economic downturn would have on the demand for Apple's products.
Even as the China supply chain lurches to life after a shutdown for most of the first quarter, the global smartphone market is expected to post a record contraction in the second quarter because of ongoing coronavirus impacts.
Apple's sales of iPhones in the first calendar quarter of 2020 were down by only 1% in a China market that contracted by 22% year-over-year, as buyers rapidly shifted to online orders and enthusiastically bought iPhone 11 models.
Maybe 2019 was practice for Apple, as it is now used to releasing new products via a press release. That's what it had to do in March 2020 as the whole world self-isolated, and Apple Stores closed their doors.
Morgan Stanley said Friday it is reducing expectations for Apple through fiscal 2021 to better align with the bank's macro view that GDP growth will take a greater hit than previously expected, due largely to a prolonged consumer recovery.
Two major financial papers that usually blow out false news about Apple's supply chain in lockstep have suddenly diverged in their imagined tales of how the world's best capitalized and most proficient and competent tech company might be somewhat challenged by the economic disaster now killing thousands of people.
Just a few months ago, Apple was gearing up to climb onto the gigantic shoulders of its blockbuster iPhone 11 launch to deliver another massive annual upgrade to its Macs, iPads, audio devices, wearables, and the upcoming new iPhone 12. Then the world ground to a halt in an unprecedented way. Here's how Apple can make the most positive impact possible in this year of social distancing.
The Apple Watch is no longer being impacted by a tariff applied by the U.S. government on goods imported from China as part of its trade war, with the U.S. Trade Representative approving the exclusion of the wearable device from the financial measures.
Apple is set to reopen all 42 Apple Stores in China after a month-long closure due to fallout from the coronavirus pandemic, though nearly every outlet in the region will operate under reduced hours for the foreseeable future.