Apple iPhone shipments decline in China as Huawei tightens grip in its home market
14 February, 2019, 07:19
His answer was not to report the amount of damage done and not break out detailed numbers on iPhone shipments in its quarterly results.
In the final quarter of 2018, the shipment of Apple's iPhone have reportedly declined by 20 percent in China, one of the world's largest market.
Apple saw its sales in China fall by almost 40 percent on year in Q4 2018, while other local brands saw their sales drop about 20 percent. Again blaming everyone but itself, Apple says it "will pursue iPhone price cuts in markets that has [sic] been affected by the stronger dollar".
Apple's latest iPhone models, which are mostly priced above US$1,000, face a tough challenge from Chinese-brand devices that cost about half or a third less. IDC attributed the decline in iPhone sales in part to Apple's decision to raise prices on the product.
In brief: Considering Apple no longer shares sales figures for its iPhone, reports like these are perhaps the most accurate indicator we have of market performance. The quarter is traditionally a peak season for smartphone sales. Apple still provides total revenue by region, though, and its "Greater China" sales - including Taiwan and Hong Kong - were down 27% annually to $13 million, according to CNBC. "Apple didn't seem to change its Chinese marketing plans". The Chinese slowdown was the driving factor behind Apple's first revenue outlook cut in nearly two decades.
Huawei, which briefly surpassed Apple to become the world's second-biggest smartphone brand in 2018, remains the runaway leader at home. Analysts said that Apple CEO may have masked the company's strategic mistakes in China's and the impact of fierce competition from fast-growing Chinese Android phone makers is not helping issues for Apple. Its unit shipments soared 23% in the December quarter, according to IDC. Fifth-ranked Xiaomi, a Chinese name that experienced rapid growth just before its 2018 initial public offering, ran afoul of inventory corrections and an internal restructuring, IDC said.
China's smartphone market does not look bright this year, said Wang Xi, a China analyst at IDC.
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