Apple iPhone sales in China drop by 20%

14 Февраля, 2019, 07:20 | Author: Eric Barnett
  • Apple iPhone shipments decline in China as Huawei tightens grip in its home market

China's smartphone shipments are forecast to continue to fall over 10 percent year-on-year to below 80 million in Q1 following an around 20 percent decline in Q4 2018, according to Digitimes Research.

Counterpoint said iPhone sales in the fourth quarter, which includes India's electronics sales-heavy Diwali festival, fell 25 percent on the year, reducing total sales in 2018 to 1.7 million units from 3.2 million a year earlier. A slowing economy, lengthening replacement times and the iPhone's hefty price tag contributed to the United States giant's decline, it said. Xiaomi Corp. fared even worse in the final months of previous year, when unit shipments plunged nearly 35 percent, the consultancy estimates.

It's not yet clear how Apple will attempt to reverse falling iPhone demand in 2019, though the company is expected to cut costs and rethink prices for this year's refresh.

Its single-digit market share paled in comparison to the industry's four biggest players in China: Huawei, Oppo, Vivo and Xiaomi, which came in fourth with a 13.1 percent share.

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In a letter to investors released last month, Cook acknowledged Apple's struggles in China. This could be attributed to China's economic slowdown, changes in consumption structure and also competition from local rivals such as Huawei and Xiaomi. The company has focused on its push to ramp up its services business-the company's fastest-growing revenue segment-as iPhone sales have faltered.

IDC says the high prices of the new iPhones had a major impact on sales of Apple's smartphones. "Apple didn't seem to change its Chinese marketing plans". Both companies have seen a slump in shipments in China, and have been the worst performing among top five smartphone makers.

The shipment numbers for the quarter ending December 2018 are out, and things don't look good for Apple and Xiaomi. That's despite grappling with an unusually turbulent few months during which its finance chief was arrested on allegations of bank fraud, and the USA marshalled its allies to try and block the company from selling next-generation networking equipment.

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