Apple's latest numbers show a huge slowdown in China - CNET

Apple did not immediately respond to a request for comment.

A potential reason for the drop is heat from competitors. Chinese phone makers like Huawei, Oppo and Xiaomi have traditionally focused on low-end to midtier devices for budget-conscious China, but have now started moving to the high-end segment. Xiaomi's Mi 5 and Huawei's P9, for instance, are meant to compete with flagships from Apple and Samsung. In fact, many Chinese smartphone makers are one-upping Apple by releasing phones with features that the iPhone maker has yet to capitalize on, such as USB-C support, Dual LED flash and OLED displays.

But it's not like Apple isn't trying. There were several not-too-subtle hints that it wants a bigger slice of China during the company's bid developer conference in June. Apple has also invested $1 billion in Didi Chuxing, China's Uber, possibly part of an attempt to butter up the Chinese govement, which can be harsh on foreign businesses.