NEW YORK (TheStreet) -- Shares of Apple Inc (AAPL) are lower by 0.8% to $126.60 in midday trading Monday, following a study by analysts at IDC that showed the Chinese smartphone market has reached the saturation point, according to Reuters.
During the first quarter of 2015, smartphone shipments to China contracted for the first time in six years to 98.8 million. The figure fell 4.3% compared to a year ago due to market saturation, IDC noted in a report.
In 2011, China succeeded the U.S. to become the world's largest smartphone market, Reuters added.
Separately, analysts at UBS cut its estimate of fiscal 2016 sales of the Apple Watch to 31 million from 40 million, based on its "Evidence Lab" monitor tool.
Still, the firm has an overall positive outlook on the product, saying it has the potential to become a "must-have" item over the longer term.
UBS maintained its "buy" rating with a $150 price target on Apple shares.
Apple designs, manufactures and markets mobile communication and media devices, personal computers, and portable digital music players, as well as a variety of related software, services, peripherals, networking solutions, and applications.
The company is based in Cupertino, Calif.
Apple (AAPL:Nasdaq; $127.62; 820 shares; 4.01%; Sector: Technology): The shares fell this week on little news. We believe the convenience of using Apple Pay on the Apple Watch (with or without a tethered iPhone), while ensuring a higher level of security and privacy compared to using physical credit cards, is likely to gain traction as a smarter way to pay. By the end of next year, we believe that roughly 90% of the global iPhone installed base will be Apple Pay (NFC) capable.