NEW YORK (TheStreet) -- Shares of Apple Inc (AAPL) are lower by 1.08% to $124.96 in early market trading Tuesday, following reports that the tech giant is in talks with Chinese e-commerce site Alibaba Group Holding Ltd (BABA) to bring Apple Pay to China, according to Reuters.
In 2011, China succeeded the U.S. to become the world's largest smartphone market, Reuters added.
However, a study released on Monday by analysts at IDC showed the Chinese smartphone market has reached the saturation point, according to Reuters.
In addition, 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, Apple CEO Tim Cook told Xinhua news agency in an interview that he is very bullish on Apple Pay in China.
In October, Alibaba chairman Jack Ma said the e-commerce giant was willing to working with Apple on Apple Pay.
Alibaba's affiliate Alipay is China's largest payments service, Reuters noted.
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.
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