Apple Inc. AAPL 1.4% has bounced back nicely since the stock briefly dipped below the $90 level earlier this month for the first time since 2014. However, OTR Global doesn’t think Apple traders should be very excited about the 10 percent bounce. Instead, the firm recommends traders sell the bounce.

OTR has downgraded Apple to Negative following its latest checks with 13 Chinese network operators and electronics retailers that collectively represented more than 453 million in mobile phone procurement volume in 2015. According to the firm, iPhone price cuts have not been helping China sales.

“Retail price cuts and higher subsidies for Apple’s iPhone in China have not driven sell-through during 2Q16, and buyers have begun to report rising iPhone inventories,” OTR reports.

In addition, the firm reports that the iPhone has gained market share for only two out of the 13 buyers so far in Q2. Just one month ago, 15 out of 19 buyers OTR contacted for its monthly iPhone check expected…

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