Strategy Analytics: Apple Shipped an Estimated 2.5 Million Fewer iPhones in China in 2018 Than in 2017

Discussion in ' News Discussion' started by MacRumors, Jan 24, 2019.

  1. MacRumors macrumors bot


    Apr 12, 2001

    Apple shipped an estimated 34.2 million iPhones in China in 2018, down from 36.7 million in 2017, according to new data shared today by Strategy Analytics.

    During the fourth calendar quarter of 2018 (Apple's first fiscal quarter), Apple shipped 10.9 million iPhones, down from 14 million in the fourth quarter of 2017.


    Apple surpassed Xiaomi to become the number four smartphone vendor in the country, but its iPhone sales fell short of Huawei, OPPO, and Vivo, all Chinese companies that make more affordable smartphones.


    For 2018 in total, Apple came in fifth in China, trailing behind the four major Chinese smartphone vendors. Huawei was the number one vendor in China, shipping an estimated 105.1 million smartphones during the year. OPPO shipped 82.8 million, Vivo shipped 79.3 million, and Xiaomi shipped 50 million.

    Apple lost market share in the fourth quarter of 2018, but gained ground overall in 2018. Apple held 10.1 percent of the smartphone market in the fourth quarter of 2018, down from 11.5 percent in the fourth quarter of 2017. Apple's total 2018 marketshare was 8.4 percent, up from 8 percent.


    Despite the slight year-over-year jump, Apple trails all major Chinese smartphone vendors in the country when it comes to market share, including Huawei, OPPO, Vivo, and Xiaomi.

    Fourth quarter smartphone shipments in China declined by 11 percent annually, with a total of 107.9 million units shipped by all vendors. That's down from 121.3 million in the fourth quarter of 2017. Smartphone shipments also fell 11 percent annually, with 408.5 million smartphones shipped in China in 2018 down from 459.6 million in 2017.

    Overall smartphone shipments have declined for five consecutive quarters in China, which has heavily impacted Apple. Apple recently downgraded its guidance for the first fiscal quarter of 2019 (which is the fourth calendar quarter), blaming the move on poor iPhone sales, primarily in China.

    Strategy Analytics Director Linda Sui said that the holiday quarter was Apple's worst performance since early 2017. Apple's iPhone shipments have dropped on a year-over-year basis in China for 8 of the last 12 quarters.
    To boost sales in China, Apple has cut the prices of its iPhones for third-party distributors in China, allowing distributors to provide iPhones at lower prices for Chinese customers. The biggest discounts have been on the iPhone XR.

    Apple's lowered pricing comes just ahead of the Chinese New Year in February, with Apple hoping the discounts will lure shoppers into purchasing a new iPhone during the holiday.

    Article Link: Strategy Analytics: Apple Shipped an Estimated 2.5 Million Fewer iPhones in China in 2018 Than in 2017
  2. 2GoldFish macrumors regular


    Feb 1, 2012
    Bring the iPhone price up a bit more in 2019 and it should solve it. :rolleyes:
  3. AngerDanger, Jan 24, 2019
    Last edited: Jan 24, 2019

    AngerDanger macrumors 601


    Dec 9, 2008
    Didn't Cook have a meat-based adjective to compare these stories to…

  4. SteveJUAE macrumors 68020


    Aug 14, 2015
    Land of Smiles
    Of course none of the other OEM's have thought of lowering prices for the new year purchase incentives so Apple should be ok :rolleyes:
  5. Col4bin macrumors 68000


    Oct 2, 2011
    El Segundo
  6. smorrissey macrumors 65816

    Mar 12, 2015
    but 1 phone sold was the equivalent to 2 sold ($$) so Cook is happy.
  7. mi7chy macrumors 603


    Oct 24, 2014
    Has nothing to do with trade war but rather competition has just gotten better in design, quality and value. Started in July of 2018 with Huawei taking over #2 from Apple so long before the trade war.
  8. Amacfa macrumors 68000


    May 22, 2009
  9. TMRJIJ, Jan 24, 2019
    Last edited by a moderator: Jan 25, 2019

    TMRJIJ macrumors 68030


    Dec 12, 2011
    South Carolina, United States
    For what? It’s not like they actually felt anything. Even if this decline continues, Apple is more than a decade away from being in the kind of trouble to even merit lay-offs of any sort.
  10. gavroche macrumors 65816


    Oct 25, 2007
    Left Coast
    They are cutting back on the G5 Powerbook development team....
  11. randyj macrumors regular


    Aug 23, 2004
    In other words, Apple increased market share in China from 7.9% in 2017 to 8.4% in 2018.
    However as the smart phone market in China dropped by more than 50 million hand set purchases in 2018, Apple sold 2.5 million fewer phones in 2018.
    As phones are usually purchased every 2 years, Apple expects to have a strong year in China in 2019.
  12. pat500000 Suspended


    Jun 3, 2015
    what word? "Stale?"
  13. averageguy30 macrumors newbie

    Jan 24, 2019
    Yup. But got to get them clicks.
  14. bladerunner2000 macrumors 68020


    Jun 12, 2015
    No man, they need to make a phone with less ports and NO screen! Because who needs options?! That's the Apple way.
  15. CPx macrumors 6502a

    Sep 6, 2013
    Chinese market likes new designs. They're not as big on the S-cycle.
  16. az431 macrumors 6502a


    Sep 13, 2008
    Portland, OR
  17. JPack macrumors 68040


    Mar 27, 2017
    iPhone XR is priced the same as Huawei's Mate 20 Pro.

    Huawei's device comes with a 6.4" OLED, Face ID, under-display fingerprint reader, 3 rear cameras, and 128GB of storage. Sure, iOS matters. But at some point, specs and features too.

    Chinese brands had already adopted 6" phablets in 2017. What Apple launched in 2018 is effectively what was already available. Chinese consumers have very much less incentive to upgrade in 2018/2019.
  18. Gogeta-Blue macrumors regular


    Dec 10, 2018
  19. givemeanapple macrumors Demi-God


    Oct 2, 2016
  20. az431 macrumors 6502a


    Sep 13, 2008
    Portland, OR
    Never thought I'd see "better in design, quality and value" associated with Huwaei. That's one for the ages.

    Seriously though, you'd make a killing in stand up comedy.
  21. Baymowe335 macrumors 601

    Oct 6, 2017
    This is just wrong. The trade war is impacting many US companies in China and China itself.

    Intel just blamed China for an earnings miss today.

    Samsung also reported soft sales in many businesses and closed a factory in China.

    I’m not saying it’s only the trade war, but it is having a direct impact and an element of nationalism against non Chinese companies. Too many companies mentioning it.
  22. Zenithal macrumors 604

    Sep 10, 2009
    You'd think with the newly minted Chinese they'd be more ostentatious and simply buy the best because they could, thus alleviated Apple's current issues with the country.
  23. JPack macrumors 68040


    Mar 27, 2017
    You should check with consumers not wearing Apple-colored glasses. Those in other G20 countries where Huawei isn't banned for political reasons.
  24. Baymowe335 macrumors 601

    Oct 6, 2017
    So if we believe these numbers, Apple had a 6-7% drop while the entire industry shipped 11%-12% fewer for the year.

    Seems Apple is holding up pretty well.
  25. coolfactor, Jan 24, 2019
    Last edited by a moderator: Jan 25, 2019

    coolfactor macrumors 68040

    Jul 29, 2002
    Vancouver, BC CANADA
    How many Westerner's are buying Huawei phones due to pride? You can bet your bottom dollar that Chinese are not buying Apple (aka American) because of national pride.

    I'm Canadian. I don't buy Apple because it's American. I buy it because it's the best choice for me. So many consumers buy what is "good enough" for them, and don't share the same pixel-perfect passion that we Apple fans do. The competition has cast a shadow over Apple, and the gap has become so narrow. If it looks the same, then it's just as good... at least that's what they think. Even my own family (my mom aside) doesn't understand what separates Apple from the rest. Ironically, my older brother used to bash me for thinking Apple was somehow better, and now he's an iPhone owner. Go figure.

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