Apple (AAPL) iPhone Sales Plummeting in China

NEW YORK (TheStreet) -- Apple  (AAPL)  is suffering a dramatic loss in iPhone sales out of its biggest overseas market, China. iPhones made up 10.8% of all cell phone devices sold in China in May, down from 12% in May of 2015, Bloomberg Intelligence analyst John Butler said on "Bloomberg Markets" Wednesday.

The iPhone dropped to a number five ranking in China's cell phone market.

China's currency, the yuan is down 8% from last year which makes the iPhone more expensive in China, Butler said. 

Local Chinese electronic vendors such as Vivo, Oppo, Xiaomi, Huawei, have come out with low-cost, feature-rich phones that are very similar in quality to the iPhone, Butler added.

The iPhone in China targets high end consumers, but Butler believes they need to get it to the lower market to compete.

Shares of Apple are trading up by 0.21% to $95.18 on Wednesday afternoon.

Separately, TheStreet Ratings team has Apple at a "buy" with a ratings score of B. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. TheStreet Ratings feels its strengths outweigh the fact that the company shows weak operating cash flow.

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

You can view the full analysis from the report here: AAPL

More from Markets

Rewind: Jim Cramer on the Stock Market Rebound, Walmart, Amazon and JCPenney

Rewind: Jim Cramer on the Stock Market Rebound, Walmart, Amazon and JCPenney

Is Nvidia Still Tech's Most Explosive Stock? A Bull and Bear Debate

Is Nvidia Still Tech's Most Explosive Stock? A Bull and Bear Debate

Nvidia Is Tumbling After Beating Earnings but Issuing Light Guidance

Nvidia Is Tumbling After Beating Earnings but Issuing Light Guidance

Teva Notches Win With FDA Approval of Generic EpiPen

Teva Notches Win With FDA Approval of Generic EpiPen

Dow Jumps Nearly 300 Points as U.S. and China to Resume Trade Talks

Dow Jumps Nearly 300 Points as U.S. and China to Resume Trade Talks