iPhone sales slump in China, as Huawei gains ground
February 12, 2019 Category China News Round-up, Weekly
Apple reported a 19.9% decline in shipments in China in the fourth quarter, but climbed one place to No 4 in smartphone shipments after Xiaomi did even worse, tumbling 34.9% during the same period, according to a report by IDC. Overall industry shipments for China fell 9.7% to 103 million units. Bucking the trend, Huawei registered a 23.3% gain, while second- and third-placed Oppo and Vivo eked out modest gains of 1.5% and 3.1%, respectively.
While Apple Chief Executive Tim Cook blamed the weak Chinese economy when the company announced earlier last month a downgrade in revenue guidance for the quarter ended December, analysts said he may have glossed over strategic missteps in the world’s largest smartphone market and the effects of fierce competition from fast-improving Chinese Android handset makers. Apple’s latest iPhone models, which are mostly priced above USD1,000, face a tough challenge from Chinese-brand devices that cost about half or a third less. “The imbalance between the increasingly severe domestic market environment and Apple’s high product unit price has led to the decline of iPhone shipments in Chinese market,” IDC said. Huawei’s two-brand strategy has enabled the Shenzhen-based company to cater to consumers in different price brackets, while Oppo and Vivo have launched premium handsets to expand their product line.
Apple said it will pursue iPhone price cuts in markets that has been affected by the stronger dollar. Although it did not specifically name any markets, analysts have widely anticipated an official price cut for the iPhones in China as authorized third-party vendors like JD.com are already selling the new iPhones at up to 20% price reduction. Xiaomi’s shipment slump was due to a number of factors including the adjustment of product line and inventory channels, as well as the revamp of its internal organization, said IDC. In January, Xiaomi announced that its budget product line Redmi will operate as an independent brand to sharpen its competitive edge and expand overseas, the South China Morning Post reports.
- KURT VANDEPUTTE (UMICORE) APPOINTED CHAIRMAN OF THE BOARD OF THE FLANDERS-CHINA CHAMBER OF COMMERCE (FCCC)
- Webinar: “Knowing Your Chinese Partner” – May 26, 2021, 10 am – 12 am
- EMA starts rolling review of CoronaVac, WHO approves Sinopharm vaccine for emergency use
- The Global Times warns not to politicize the Comprehensive Agreement on Investment (CAI)
- Hainan to become biggest duty-free market in the world