Apple Lowers Prices of iPhones, iPads, Macs, AirPods, and More in China as VAT Cut Takes Effect

[AppleScruff1]

They are doing it where it needs to be done. China was a poor performer among a lot of strong performances last quarter.

Fix China and Apple is right back on track.

I thought you have been saying Apple has been on track and non of the negatives mean anything?

 

[HarryDevlin]

That is not a serious cut. Apple does not think it is in a crisis. Well, it might become a catastrophe by the end of the year. China is fast evolving market out of Apple's last year plan. Take it seriously, Apple. Make a 20-25% price cut and hold your market share. Samsung is dying there. Did you not see that?

Prices are not the only issue. The iPhone has fallen far behind the offerings from Huawei, Xiaomi, and Oppo. Combine this with the much higher prices and there may be no solution. The Chinese companies are willing to accept far lower margins than Apple or Samsung. It's not an Apple-only problem, as you stated, Samsung is also in trouble in China despite keeping up with the technology and features of the Chinese phones.

The other big issue for the iPhone is that in China, everything revolves around WeChat, which works the same on Android or iOS. Also, there are far more Chinese-specific Android apps than iPhone apps.

Sometimes there is just no solution to the problem that not every product is suitable for every country. Apple is in an especially difficult position because they were incredibly late to market with dual-SIM phones and large screen phones, both of which are very important in China. Convincing Android users to switch to a much more expensive device that lacks some of the functionality of the cheaper device is not possible.
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Don't forget that Huawei and other brands are offering better in specs and features for a fraction of an iPhone. Apple has to offer more value for money instead of focusing on profits alone. Apple is pushed out of China with their iPhones and I won't see them returning. It's simply a question of value for money and if Apple wasn't such a strong brandname it should see the same results in europe.

The Chinese brands are happy with 10% margins. Apple can't survive on 10% margins. The Chinese people that can afford flagship smart phones look carefully at the specs and features, and the iPhone has been falling further and further behind.

iOS is an issue because a) WeChat works the same on Android or iOS, and b) there are far more Chinese Android apps than iOS apps due to the whole app distribution model in China.

A lot of Chinese consumers, and consumers worldwide, are holding off on upgrading their phones, whether iPhone or Android, until the 5G models come out in the next three to twelve months, even though 5G won't be widespread for two to three years.

Sometimes there is just no solution. Not all products are well-suited for all countries.
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You can't be serious! Samsung is #1 worldwide in mobile sales, #2 is Xiaomi, and 3rd is Apple.
Samsung can't die when they're supplying the whole smartphone market with screens and parts. They don't rely on the sale of their flagship phones to get by. Do some research!

It is you that needs to do some research.

http://english.chosun.com/site/data/html_dir/2018/11/20/2018112001488.html
https://www.theverge.com/2018/11/2/18055094/samsung-smartphone-sales-decline-2018-report
https://www.wsj.com/articles/apple-beware-samsungs-great-fall-in-china-was-swift-11546604405
https://www.cultofmac.com/599270/samsung-suffers-smartphone-sales-slump-china/
https://www.reuters.com/article/us-...a-slowdown-chips-away-at-demand-idUSKCN1P00PC

Chinese companies are now able to build their own screens and processors. Samsung isn't in as much trouble in China as Apple, but their market share is falling significantly.

 

[9081094]

Chinese companies are now able to build their own screens and processors. Samsung isn't in as much trouble in China as Apple, but their market share is falling significantly.

Samsung is better suited for China and India at the moment... will be interesting to see if Apple is able at all to recapture some marketshare. I’m not betting on it.

 

[Wanted797]

Apple knows the iPhone can't compete in China whatever they will price it. In China you can buy better for half the price of the iPhones. Wait for the Chinese brands to get a foothold on american soil. All new iPhones should have come with dual camera and OLED already and with better RAM options to make them somewhat competitive again. But Apple is only focusing on profit margins so I'm saving some hope for iOS 13 to leapfrog away from Android. If not... iPhone is done.

I used to work in a phone store and customers used to come in all the time complaining about lack of RAM options and no OLED!

 

[kis]

I used to work in a phone store and customers used to come in all the time complaining about lack of RAM options and no OLED!

Oh, I bet