Apple's iPhone has "gone out of fashion in China" which is holding back its performance globally, according to one analyst, but CEO Tim Cook said a continued good relationship with WeChat owner Tencent could help it gain users.
Greater China revenues for Apple fell 10 percent year-on-year in its fiscal third quarter to just over $8 billion. It marks yet another quarter of decline for the U.S. tech giant.
In contrast, domestic brands Huawei, Oppo and Xiaomi all recorded double-digit growth globally, driven by a strong performance in the world's largest smartphone market.
"Apple's iPhone has gone out of fashion in China and this is placing a cap on its worldwide performance," Neil Mawston, executive director at Strategy Analytics, said in a note on late Tuesday.
"Attention will now turn to Apple's rumored iPhone 8 introduction later this year and whether its tenth-anniversary flagship model will be different or exciting enough to ignite a rebound in iPhone volumes."
The iPhone 8 is rumored to be launched in September and a number of leaks have suggested it will be Apple's most advanced phone yet. This is something that could appeal to Chinese consumers who have taken a liking to the high-spec devices put out by domestic rivals Oppo and Vivo. Both brands along with Huawei have posed stiff competition to Apple in China.