INSUBCONTINENT EXCLUSIVE:
Image copyrightGetty ImagesA shock revenue warning from Apple has stoked fresh fears about trade tensions and spending in world's second
But analysts say cut to its sales forecast reflects longstanding problems at tech giant
iPhone sales have been sliding and Apple faces stiff competition in China
Experts argue warning highlights company's need to create new centres of growth
In a letter to investors on Wednesday, Apple's chief executive Tim Cook said China was central to Apple's sales problems
The Greater China region, which includes Hong Kong and Taiwan, accounts for almost 20% of firm's revenue
Mr Cook said Apple "did not foresee magnitude of economic deceleration" in Greater China, adding that US-China trade tensions had hurt
Cheaper Chinese alternativesBut Apple's troubles in China aren't new
It has long faced tough competition in market from cheaper local rivals like Oppo, Huawei and Xiaomi
The firm is highly dependent on customers buying new phones
That relies on technological advances - and it's here that Apple has struggled to entice consumers."Post iPhone 8, technology advances began
to plateau, thus consumers' incentive to purchase a new iPhone has declined," Taipei-based technology analyst Sam Reynolds said
He said Apple's surprise revenue warning is "simply a sign of times for Apple"
"I wouldn't read this as a proxy of US or Chinese economy, nor impact of trade war," Mr Reynolds said.Recent production cuts by major
suppliers have led to worries that firm's newest phones were not gaining traction among buyers, in part due to high prices.Mr Reynolds said
Android phones like Google Pixel, Oppo's Flagship X, OnePlus 6, or Huawei P20 Pro "are simply more interesting products for price range"
Will Wong, analyst at technology consultancy IDC, agrees that competition from Chinese rivals has presented challenges to Apple
Mr Wong said recent detention of a senior Huawei executive had also "triggered surge of patriotism which would increase business challenge
to Apple".Consumers tighten spendingThose difficulties are compounded by a slowing Chinese economy
In recent years, Apple has responded to a decline in smartphone sales by raising prices - a move that has helped company enjoy record
revenues, even while industry generally contracts.But that has become more difficult as consumers curb spending, making it harder for tech
giant to sell its premium products
"Consumers will be getting more price sensitive during unfavourable economic development, and competitive pricing offered by Chinese vendors
would be more attractive to consumers," IDC's Mr Wong said
