Apple faced the “informal boycott” by consumers in China

Analysts from Bank of America Merrill Lynch suggested that Apple had encountered “an informal boycott” by consumers in China and India.

According to a survey conducted by the research group of the Bank, consumers in China and India are showing less interest in changing smartphone iPhone and more interested in switching to Xiaomi or Samsung. In addition, Apple suppliers have seen a significant drop in sales, presumably due to weak demand for phone companies in China.

Analysts attribute the issue with three key problems:

  • Fears of a trade war has already undermined the U.S. stock market, and the fear of severe restrictions from China reinforces this pressure.
  • Trade war weakens the yuan, making a wide range of American goods less competitive, and reduces the dollar value of income abroad.
  • The unofficial boycott of American products increases the trade deficit in both countries.
  • Using data from IDC, Bloomberg notes that with the rapid growth of Xiaomi, it is reasonable to assume that the Apple can fall from the three leaders in sales of smartphones in China, if in the near future will not happen a radical change.

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    Clifton Nichols

    Clifton Nichols

    Hi! I’m Clifton and I am a full-stack engineer with a passion for building performant and scalable applications that are beautiful and easy to use.

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