Apple Inc. (AAPL) - Get Apple Inc. (AAPL) Report shares traded sharply lower Monday, reversing earlier gains, following a report that suggested the tech giant has slashed sale prices for its iPhone and Mac products in China.
CNBC said the cuts, which it found through Apple's website, suggest price declines of around 6% and include AirPods, iPads, iPhones and Macs sold online in the world's second largest economy. The website also noted that anyone who had purchased one of those products over that past two weeks would be eligible for a refund for the difference.
Apple shares were marked 0.75% lower on the session in heavy trading volume Monday and changing hands at $188.54 each following the report, having hit a day high of $191.64 each.
Apple cautioned earlier this year that it would cut some of its flagship iPhone prices for only the second time since they were launched 12 years ago, pegging them to local currencies instead of the U.S. dollar.
"Weve decided to go back to (iPhone prices) more commensurate with what our local prices were a year ago, in hopes of helping the sales in those areas," Apple CEO Tim Cook told Reuters in late January.
nternational Data Corp. figures show Apple's iPhone sales fell by an annual rate of 19.9% over the final quarter of last year, clipping its market share to around 11.5% from 11.8% as slowing economic growth, higher prices and longer replacement times kept more of the company's key products on shelves around the world.
Apple was the first U.S. bluechip to cite weaker China demand when the world's biggest tech company told investors on January 2 that revenue for the three months ending in December would come in around $84 billion, notably shy of the Street consensus of around $94 billion and the company's own previous guidance of between $89 billion and $93 billion.
Apple's China sales over the three months ending in December fell 34% to $13.17 billion, the company reported on January 29, compared to a 4.5% top in overall topline revenues.
"In the letter we shared earlier this month, we said we are proud to participate in the Chinese marketplace and that we believe our business has a bright future there over time," Cook told investors at the time. "Despite the challenging December quarter, our revenue from China grew slightly for the full calendar year. Macroeconomic factors will come and go, but we see great upside in continuing to focus on the things that we can control."