Ap­ple Forex loses re­servesits shineat 5-yearin Chi­nalow

China Daily (USA) - - BUSINESS - By MASI masi@chi­nadaily.com.cnBy REUTERS

Due China’sto the for­eign lim­ited ex­changeim­prove­ments re­serves fell seen to thein low­est suc­ces­sive since iPhone2011 in Au­gust mod­els as and the a cen­tral­wider range­bank in­ter­venedof al­ter­na­tivesto sup­port from the do­mes­ti­cyuan as it smart­phoneweak­ened to mak­ers, near-six Chi­ne­seyear lows. con­sumers are less en­thu­si­as­ticWhile the $15.89about the bil­lion up­com­ing drop was in iPhone,line with which mar­ket will ex­pec­ta­tionsbe un­veiled and on was Thurs­day de­scribed Bei­jing by Time, an­a­lysts ex­pert­sas mod­est,said. it was the biggestSina de­cline Weibo, sincethe May Chi­nese and coun­ter­part­could sig­nal of fresh Twit­ter, cap­i­tal shows out­flows that in fromthe mon­ththe econ­omy be­fore even­this year’sas it starts launch, to the show new signs iPhone of has steady­ing.only at­tracted one fif­teenth China’s as re­serves­many com­ments­fell to $3.185as the tril­lion iPhonein Au­gust6 man­aged— the to low­est­gen­er­ate since dur­ing De­cem­berthe same 2011— pe­riod from last $3.20 year. tril­lion at the end of July, cen­tralThis is bank echoed data by showedthe lat­est on data Wed­nes­day.from China’s big­gest search China’s en­gine re­serves, Baidu the Inc. largestIn July,in the there world, were fell only by 96.8a record­mil­lion $513 iPhone-re­lat­ed­bil­lion last year searches, af­ter mark­ingBei­jing de­val­ueda 27 per­cent­the yuan drop cur­rency, from last spark­ing year’s fig­ure.a flood of cap­i­tal JamesYan,out­flows that re­search threat­ened di­rec­tor to at desta­bi­lize Coun­ter­point­the world’s Tech­nol­ogy sec­ond­largest Mar­ket econ­omy Re­search, and said alarmedthat as Chi­ne­se­global fi­nan­cial firms mar­kets. make big im­prove­mentsBut de­clines on have hard­ware slowed com­po­nents,sharply in re­cent con­sumersmonths as be­come au­thor­i­ties less ea­ger tight­enedto talk cap­i­ta­l­about Ap­ple con­trols Inc’s and new­prod­ucts.cracked down on forex “Smart­phone­trad­ing that hard­wareis sus­pecte­dis noto be spec­u­la­tion.longer Ap­ple’s edge, be­cause Traders the be­lieve mar­ket the is cen­tral­now very bank ma­ture­has steppedand init is via highly staterun dif­fi­cult banksto come since up mid-Ju­ly­with in­no­va­tive to slow the prod­uctspace of de­pre­ci­a­tion­that can thrill in ev­ery­one,”the yuan, whichYan said. has weak­ened 2.6 Ac­cord­ing­per­cent again­stto him, the lo­cal US ven­dors dol­lar so such­far thisas Huaweiyear. Tech­nolo­gies An­a­lyst­sCo Ltd ex­pectare catch­ing pres­sure up on quickly,the yuan and and re­serve­seven out­do­ingto con­tinue Ap­ple as hard­ware. ex­pec­ta­tions of an­other US The Fed­eral declining Re­serve pop­u­lar­ity in­terestof iPhones high­lights the chal­lenges Ap­ple is fac­ing in China, rate which­hike this was year once sup­port­the firm’s the fastest-grow­ing­dol­lar. mar­ket, but has “Lower re­cently FX be­come re­serves a source­data is of not dis­ap­point­ments.sur­pris­ing in light In of the the quar­ter­ac­tive in­ter­ven­tio­nended in June, seen Ap­ple ahead sawof thea 33 G20 per­cent meet­ing drop (in in China)sales in in China.early Septem­ber,” said Chester Liaw, an econ­o­mist at Fore­cast Pte Ltd in Sin­ga­pore.

“With a Fed rate hike likely be­fore the end of the year, the au­thor­i­ties will have their hands full with con­tain­ing any wild spikes in USDCNY trig­gered by cap­i­tal out­flows, and Wang can ex­pect Wanli, FXa 26-year-ol­dreserves to sales re­main man­ageron a down­wardin Bei­jing, path­said he through­has beento the us­ing end iPhone­sof the year.”for three Nie years Wen, and an now economistis con­sid­er­ing at Hwabao whetherTrust in to Shang­hai,buy an iPhone­said a monthly7 or Moto dropZ, the of lat­est $10 hand­set bil­lion-$20 re­leased bil­lion by in the re­servesChi­nese “should ven­dorbe nor­mal”. Len­ovo Group Ltd. “The pres­sure is rel­a­tively small“I com­pared­don’t ex­pect with lasta year­big im­prove­men­tand large-scale in cap­i­talthe iPhone out­flows7. But, shouldI ambe over quite ... partly fa­mil­iar be­cause­with Ap­ple’scap­i­tal con­trols oper­at­ing are sys­tem,”stricter thanhe added.last year.” “At the same time, Moto The Z im­pactis the of world’sforex sup­ply­first mod­u­larand de­mand hand­set re­main­sand sounds un­der very con­trol, in­ter­est­ing.the State I Ad­min­is­tra­tionwant to have a try.”of For­eign Ex­change (SAFE) Wang saidis not re­cently alone. in Ofa state­ment,five con­sumers adding China that it Daily ex­pect­e­dran­domly cross-bor­der in­ter­viewed cap­i­tal flow­son the to street re­main on sta­ble Wed­nes­day,in the medi­um­not one of to long them term.is ready to buy the new Net iPhone, for­eign cit­ing ex­changethe ex­pen­sive sales by the price Peo­ple’s tag Bank and of lim­ited China im­prove­mentsjumped to their as high­est ma­jor in con­cern. five months in July, as the cen­tral Ni­cole bank soughtPeng, to re­search sup­port di­rec­torthe yuan at af­ter Shang­hai-basedit briefly broke con­sul­tan­cythrough the key Canalys, psy­cho­log­i­cal­said Ap­plelevel of still6.7 to dom­i­nat­es­the dol­lar. the On above-3,000 Wed­nes­day, it yuan was trad­ing($450) hand­se­taround 6.66. mar­ket where most con­sumers re­main loyal to the brand.

iPhone-re­lated searches in July on search en­gine Baidu

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