Apple’s China Problem: Is luxury consumption declining?

CHINA ADVISORY - Report 14 Jan 2019 by Andrew Collier

The decline in Apple earnings has gotten mixed reports about what it means for consumption in China in general. We use a novel data set to look at consumption trends in China. Our conclusion is that consumption is for the most part concentrated in a small portion of wealthy citizens. Their purchasing decisions have a significant impact on total consumption. The so-called “middle class” is smaller, and thus less of a support for consumption than is widely assumed. If the wealthy can preserve savings, along with access to bank loans and other forms of capital, consumption will be less affected by declining GDP than in other areas of the economy.

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2024 GlobalSource Partners. All rights reserved. This report is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This report is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this report or its contents.