Apple revealed in its quarterly quarterly revenue that it was a bad iPhone sales in China that caused its original guidance to fail so dramatically.
IDC has now estimated the scale of the problem in China, suggesting that sales of iPhone have fallen twice as fast as the total smartphone market …
The company estimates that although the average decline in smartphone shipments in China was 9.7%, iPhone shipments dropped by almost 20%, reports South China Morning Post.
Apple reported a 19.9 percent drop in shipments in China in the fourth quarter, but climbed to No. 4 in smartphone shipments after Xiaomi had done worse, 34.9 percent down during the same period, according to a report from the research company IDC published on Monday. Total industrial shipments for China fell by 9.7 percent to 103 million units.
Both IDC and analysts suggest that Apple never appreciated the problem of pushing iPhone prices at a time when the Chinese market is shrinking.
Analysts said [CEO Tim Cook] Perhaps they have glossed over strategic missteps on the world's largest smartphone market and the effects of fierce competition from fast-improving Chinese Android phones.
The latest iPhone models from Cupertino, California, which are usually priced above $ 1,000, face a heavy challenge from Chinese branded devices that cost about half or a third less.
"The imbalance between the increasingly stringent domestic market environment and Apple's high product price has led to a decline in iPhone shipments in the Chinese market," said IDC in the Chinese language research report shared on its official WeChat account. .
Bloomberg reports that Canalys takes the same position.
"Apple does not have a good market strategy that fits the rapidly changing Chinese market," said Nicole Peng, senior director at Canalys. "It also seemed to respond slowly to the economic slowdown in China and the changes in the consumption structure" […]
"When smartphones became a commodity for Chinese customers, multinationals have to adjust their overall sales and marketing strategies," said Peng. "Apple did not seem to change its Chinese marketing plans."
While Xiaomi was performing worse than Apple, SCMP said the company responded.
Xiaomi announced that its budget production line Redmi will act as an independent brand to increase its competitive advantage.
Although Apple sells a number of older models at lower prices than its flagships, there is a reluctance in China to use older gadgets. Some have suggested that an iPhone SE 2 might be a solution, one that Apple seems to have rejected earlier, but the bad results of the holiday quarter have led to speculation that the company may have to review the decision. We saw a new concept video yesterday.
Some former execs from Apple have even postulated that Apple's iPhone sales in China can only be revived by making a China-specific iPhone model.
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