Chinese customers in an Apple store on Jan. 3, 2019, in Beijing, one day after Apple preannounced weak quarterly results that it attributed primarily to a sales slowdown in China.
Lintao Zhang | Getty Images
Chinese consumers are cooling on the iPhone, according to a new report by Credit Suisse analysts.
iPhone shipments in China dropped 35.4% in November compared to the same time last year, the analysts wrote in a note Thursday, despite a slight increase in the Chinese smartphone market at the same time. The analysts said Chinese iPhone sales declined 10.3% year-over-year in October, making this the second straight month of double-digit precentage drops.
Since the launch of the iPhone 11 family, total shipments in China are down 7.4% compared to last year, the analysts said, adding that "we estimate China iPhone revenue fell by >17.5% y/y over the past three months (Sept-Nov)."
Apple's stock was down nearly 1% in premarket trading Thursday.
The analysts cited the looming December 15 deadline that could see more tariffs imposed on Apple products as part of the ongoing U.S.-China trade war.
"Our (and we believe investors') base case continues to factor in a favorable resolution (i.e., no tariffs); however, we think Apple would have a difficult time pushing through tariff-related price increases to U.S. consumers (~35% of CY18 iPhone units, per Gartner) without a commensurate impact on demand."