Apple traces hard times to China

Apple Inc. sales in the fourth quarter of 2018 fell well below expectations in a downturn CEO Tim Cook blamed on China. In a letter released to shareholders Wednesday, Cook said demand for iPhones was waning. Other global companies like Tiffany & Co. and the Ford Motor Company also saw declines in Chinese sales.

The trade war between China and the United States and tumbling auto and real estate sales have undermined consumer confidence in the communist country, which is still one of the world’s fastest-growing economies. Apple is also competing with Chinese smartphone companies that produce cheaper devices. Its third-quarter shipments in China fell 13 percent from a year earlier, giving it only 7.5 percent of the market share compared to Huawei’s 24.6 percent. The iPhone maker also dropped behind Huawei and South Korea’s Samsung in global markets.

Apple stock plunged 8.9 percent as U.S. stock markets opened Thursday, and further declines across the markets were expected throughout the day.