London (CNN Business) Chinese shoppers are buying fewer smartphones. European luxury stocks were hit Thursday after Apple ( AAPL ) said it sold fewer iPhones than expected in the final three months of 2018 because of a sharp economic slowdown in China. Swatch ( Shares in LVMH ( LVMUY ), which owns brands including Fendi and Louis Vuitton, were down 3%. Chinese luxury spending remained strong in the first half of 2018 despite a sluggish economy. If Chinese shoppers weren't willing to spend big on a new iPhone, the thinking goes, they may have also put expensive purchases of luxury goods on hold.

Source: CNN January 03, 2019 15:56 UTC