Apple Priced themselves out of the market in China.
[doublepost=1556649292][/doublepost]Hell, if Apple Don't wake up they'll price themselves out of the US market too!
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Apple's iPhone Sales in China Down an Estimated 30% in Q1 2019, Huawei Continues to Dominate
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[doublepost=1556649292][/doublepost]Hell, if Apple Don't wake up they'll price themselves out of the US market too!
Apple or any phone-maker will never reach another peak like 2014-17.
Our phones are to good and as long as displays are in fine condition and batteries healthy we won’t upgrade.
Apple chose the right path to bank on software while maintaining a yearly release for the few that upgrade hardware.
Our phones are to good and as long as displays are in fine condition and batteries healthy we won’t upgrade.
Apple chose the right path to bank on software while maintaining a yearly release for the few that upgrade hardware.
Actually a lot of Huawei phones are priced at similar (if not higher) price range as iPhone's, e.g., checkout their latest P30 Pro.
And Chinese market is way much bigger than than US, even the top 10% income population is already huge.
Neither of those two statements are relevant to my points that Apple doesn’t compete in the market for cell phones priced below $600, or that the average income Chinese consumer doesn’t by Apple.
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Apple sells products more expensive in mainland China. The products remain more expensive comparing to Taiwan, Hong Kong and Macau even after lowering prices. Greater China includes Taiwan, Hong Kong and Macau so the trend should be worse if we just compare the differences from mainland China.
The thing is that in China Apple only has hardware-sales to bank on.
Cheaper price=less margin+no further income on software.
Chinese buyers only use wechat no matter what brand they buy.
well a little like a week ago I saw an article showing that Huawei had over a 30% increase in revenue in their last quarter in sales
it looks like apple is loosing the war in china
it looks like apple is loosing the war in china
When did that happen? iPhone X was $999 in 2017; the XS was better in almost every way and still $999 in 2018. Sales in the China region were $45 billion in 2017, in 2018 they’d increased to $52 billion.
Are there pricing challenges in China? Sure. But have they priced themselves out of the market? No, they haven’t.
Indeed but China have their government population ranking status... So well...
And BTW Apple already reduced iphone's price there no?
Does Huawei have any services to offer besides it's OS augmentation of Android?
I mean of course separate from networking equipment division.
I mean of course separate from networking equipment division.
The thing is - they used to buy Apple until Apple jacked up their prices in the past two years. And many people buy used, you'd bu surprised to see how many used iPhone 5s is still being bought and sold.
Huawei sells tons of high-end phones as well which is also eating Apple's market share.
True. However Apple is not marketing their phone for the 1% over there.
It has been the go-to phone for the middle class for quite a few years but now the middle class have more affordable options - not necessarily better options but if you can get 90% of what you need for 50% of the price there is no reason to pay more.
Forgot to mention the surge of conservative / nationalism views also played a role here - which mainly affects Apple's sales in lower tier cities.
They bought in 2017 and 2018; 2019 is more difficult (at least Q1 was, we’ll know more later today).
Used phones don’t show up at all in sales market share numbers, but I’m sure you’re right that a lot are sold. I’m much more concerned about anti-competitive actions like companies telling their employees not to buy iPhones, to buy Huawei instead, and reports that the government gives social credits to citizens who buy Huawei. Apple can’t control that, whereas price they do.
Obviously Apple expected to sell fewer iPhones at the highest priced X/XS/XS Max tier. To the extent they cut prices there, and on the XR, they can increase quantity sold.
Another thing to consider is the software eco-system.
While iTunes / Apple Music has been great in many countries, there are far more much cheaper and better localized options in China. $10 a month? You can get more music choices & more streaming options for less than $20 a YEAR on QQ music.
Tencent is a big player in the services area - people mostly use WeChat instead of iMessage, WeChat Pay is accepted almost everywhere, etc.
Many people don't need the Apple-services eco-system which is mostly limited to apple devices - they just need Tencent services which is available on any smartphone.
While iTunes / Apple Music has been great in many countries, there are far more much cheaper and better localized options in China. $10 a month? You can get more music choices & more streaming options for less than $20 a YEAR on QQ music.
Tencent is a big player in the services area - people mostly use WeChat instead of iMessage, WeChat Pay is accepted almost everywhere, etc.
Many people don't need the Apple-services eco-system which is mostly limited to apple devices - they just need Tencent services which is available on any smartphone.
That is such a tired and pointless argument...when a budget or midrange phone is purchased, it’s a phone that is not sold by Apple. They compete! Apple is not making themselves somehow immune by charging a fortune for their products, self evidently, Apple’s number is shrinking in China
yea, the anti-American sentiment has been growing rapidly since the trade war started. I'm sure it is damaging the sales numbers as well.
That’s akin to saying a sale for Toyota is a lost sale for BMW. Sure Toyota and BMW compete, but it’s not for the same target demographic, similar to Apple vs the local phone manufacturers.
How? If McDonald's sees a jump in revenue does it mean Morton's Steakhouse is losing the war?