The sales of the Apple Watch have reportedly dropped since its launch in April and Apple has not disclosed information about the sales of the devices. (Photo : www.slashgear.com)
Apple Inc.'s stock hit its first five-session losing streak on July 9, Thursday, driven by concerns of investors about the economic stability of China, which is a key market for iPhones, Reuters reported.
Apple shares have been down 2 percent at $120.15 in July 9 afternoon trade and have lost about 4 percent since July 1.
During the first three months of the year, Apple sold, for the first time, more iPhones in China than in the United States, a trend that is expected to grow as Chinese consumers upgrade from less expensive handsets to new ones.
But since mid-June, as the value of Chinese shares lost around 30 percent, some investors fear that the crisis could hurt consumer demand and the Chinese economy as a whole.
Investors believed that the market sell-off may affect the disposable incomes of individuals, who account for a major chunk of stock investing in China.
"China is poised to be Apple's high-octane fuel for the next few years, especially for iPhones," said FBR analyst Daniel Ives. "Given a lot of the dark clouds we are seeing in China, that has spooked investors."
In addition, investors were also worried of a report released by research firm Slice Intelligence this week that stated that the sales of the Apple Watch dropped since its launch in April. Apple has not disclosed information about the sales of the devices.
Although the Apple Watch is not seen as significant for profits in the short term, the wrist-worn gadget is considered a first major product by Chief Executive Tim Cook, and for Wall Street, its failure would not be a good indication.
The report said that Apple's stock was also within 1 percentage point of falling below its 200-day moving average for the first time since April 2014, which is an indicator closely watched by traders.
