Apple Inc. has experienced a 26 percent decline on its iPhone sales in China, highlighting the impact of the saturated Chinese smartphone market on global gadget makers.

Apple CEO Tim Cook said on the company’s second-quarter earnings report earlier this week that it is difficult to keep the attention of China’s inconsistent and increasingly hard-to-impress consumers.

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He mentioned that sales in mainland China had fallen 11 percent compared with the same period a year earlier. In addition, the sales in the first quarter of 2015 were 80 percent higher than in the same period in 2014. However, Cook added that the current decline is a setback for one of the most beloved brands in China.

Apple attributed the drop down on sales to the slowdown on macroeconomic issues and tough year-over-year comparisons. Also, the company mentioned that Hong Kong’s currency has strengthened significantly over the past two years, thus making it more expensive for international shopping and tourism in the country.

Analysts said that China’s young, middle-class consumers are increasingly willing to try phones from the many competitors — including Huawei, Meizu and Xiaomi — that strive to compete with Apple on technical specifications and aesthetics but that offer their models at a few hundred dollars cheaper.

Those companies offering mid-tier phones in China priced below $250 are growing in line with the improving wages of the middle class. However the majority of those wages are still far below the premium market that Apple’s phones target in China.

“We believe Apple still has its brand premium in China. But its sales mix is moving to lower average selling price,” said CK Lu, a research analyst at Gartner Inc.

He said the average price for iPhones is expected to fall in China, with Apple having to offer lower cost models in the growing, competitive market.

Some analysts who believe things will begin to recover once the economy starts to improve and wealthier Chinese customers get ready to upgrade their phones, potentially starting with the iPhone 7 in September. They also expect the launch of the iPhone 7 to return Apple to growth.

Tagsapple, china, iPhone, iPhone 7, Apple China