Apple faces a 'difficult situation' in China: Expert

Apple (AAPL) is set to release its fiscal second quarter results on Thursday, May 2, after the market close. A big area of focus will be the company's iPhone sales in China, which fell 19% in the first quarter, according to analysis from Counterpoint Research.

China Beige Book CEO Leland Miller thinks there is a secular move away from Apple in China, given there is pressure on both supply and demand. "The government [of China] doesn't want many of its employees using Apple...you have a movement away from foreign phones. You got these great advanced options domestically," Miller says when talking about demand. When it comes to supply, Miller argues Apple has been getting "enormous push" to reduce its reliance on Chinese supply chains.

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This post was written by Stephanie Mikulich.