From iPhones to autos, global brands rely on China for growth. Now the country's economic slowdown is putting their earnings at risk.

Axar.az reports citing CNN.

Apple (AAPL) on Wednesday said that it expected a weaker Chinese economy to hurt its holiday sales numbers, prompting its stock to plunge up to 8% in after hours trading. CEO Tim Cook said in a letter to investors that the company had been blindsided by "the magnitude of the economic deceleration" there.

"This year has the potential to be a tough year for western brands," said Benjamin Cavender, a Shanghai-based analyst at consultant China Market Research Group.

The Chinese economy is flagging after decades of expansion. Growth in 2018 is expected to be the weakest since 1990. The outlook for this year is even worse, as the trade war with the United States and government attempts to curb runaway debt take their toll.

That spells trouble for companies that rely on China's enormous market to boost their global sales. Chinese consumers could be less willing to part with their cash for the latest smartphone or luxury handbag as they tighten their belts.

"Brands like Apple will struggle in part because consumers are having to think harder to justify premium products and brands," said Cavender. He points out that China now boasts a number of homegrown smartphone makers, like Huawei and Xiaomi. Many of these offer products that are competitive with the iPhone's capabilities but are substantially cheaper.

China is hugely important to Apple, making up about 15% of the company's global revenues. "When you talk about China and Apple, they're tied at the hip," said Dan Ives, New York-based managing director of equity research at broker Wedbush Securities. China is "the heart and lungs of the Apple growth story."

But he thinks the company has made missteps in this market, such as selling some recent models of the iPhone at a price deemed too expensive by Chinese consumers.