Apple Revenues Could Drop 20% in China

The revenues of Apple Inc. (NASDAQ: AAPL) in China could slump by 20 percent in China in its earnings report for the quarter, based on a research by Baidu—the “Chinese Google.”

As part of Baidu’s online suite of products, the company provides a search platform, as well as a mapping software. The company has approximately a 70 percent to 80 percent market share when it comes to search in the Asian region and record billions of location requests on Baidu Maps.

The so-called Chinese Google stated that it has the capacity to predict consumer trends and employment and these factors’ effect on the revenue of a company. Baidu was able to do this through the big data from the use of its search and map products.

The company utilized these tools on the retail sales of the iPhone maker in the Asian region, choosing a list of flagship Apple stores in China and then computing the volume of map queries of all the stores.

The Chinese Google discovered that map query volumes in the last quarter of the previous year were higher by 15.4 percent on a year-over-year basis. This figure corresponded with a 14 percent boost on the Chinese revenue of the Cupertino, California-based tech giant in the same quarter.

However, during the first quarter of the current year, map queries plunged by 24.5 percent on a year-over-year basis. This figure is again in line with the 26 percent drop in the revenue of the iPhone maker in the Asian country.

Baidu stated, “The impressively strong correlation indicates that map query data provides possibilities for us to ‘nowcast’ the company’s revenues and reveal the future trends. Based on our analysis of latest data, we project that the Apple’s revenue in China of second quarter of 2016 may be down around 20 percent on a year-over-year basis.”

The second quarter that Baidu is referring to is the fiscal third quarter of the tech giant, which will be reported on the 26th of July. The iPhone maker did not give any comments regarding the matter.

In recent times, Apple Inc has been having a hard time in the Asian region and has been losing market share because of a heightened competition from local competitors including Oppo, Huawei, and Vivo.

The Cupertino, California-based tech corporation is anticipated to experience its first down year for the its flagship device iPhone this year, with shipments slumping from the previous year’s 232 million to 227 million this year, according to the IDC. During the month of April, iTunes Movies and iBooks were shut down in China just 6 months after the tech corporation launched the services in the country.

The iPhone maker has been attempting to make in-roads into the region by making a $1 billion investment in Didi Chuxing, which is local ride hailing application.

As of 6:47 AM GMT -4 on July 22, the AAPL stock is changing hands at $99.43, down by 0.53 percent or 0.53 points.

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