Apple sales in China slowing down due to overstocking?


Sales of one of the world’s top selling smartphones has hit a snag in China, as iPhone sales in the country have been disappointingly poor.
Reuters said that the Chinese are not waiting for the release of the iPhone 5, when other handsets such as Samsung device, have a lot of swag in their designs and features and are already available in the market.

In the greater China area, Apple sales amounted to $5.7 billion for the previous quarter. Tim Cook of Apple said that the reason for the decline was not weak sales, but it is in fact due to “changes in the inventory channel“. Analyst said that what Apple means by this, is that they had surplus in their inventory during the first 3 months of the year.

This excess meant that resellers and distributors do not need to purchase iPhone during the following quarter. One reason for no or slow reorders is the impending release of the iPhone 5.

Analyst added that the rivals of Apple were well received by the Chinese. These include Asian brands such as HTC and Samsung.
TZ Chuang who is an analyst for research firm IDC said, “The (iPhone 4S) model is a little bit too long in the tooth when compared to other phones with better specs.”

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