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Apple’s iPhone Continuing To Slump In China

Apple’s recent woes still aren’t over, apparently.

iPhone sales are continuing to slump not just in China, but also in other parts of the world. Shipments in China have fallen by nearly 20% starting from the 4th quarter of 2018. This is due to a whole slew of reasons, including China’s slowing economy, long replacement times for bad shipments, and most of all, the Apple iPhone’s heavy price tag as compared to other local brands.

Chinese brands are now Apple’s biggest rivals, with their phones’ impressive specs for half the price of a regular iPhone. Huawei Technologies Co. is one of Apple’s biggest competitors. The Chinese company’s shipments were up by 23% in the last quarter of 2018, which is quite impressive considering the country’s declining economy. Even Xiaomi, another Chinese company, declined in shipments by almost 35% in the latter part of 2018.

Business Insider reports that smartphone labels are now “contending with a plateauing global market after years of breakneck growth, as a lack of innovation discourages consumers from replacing devices as often as they used to.” This caused Apple retailers in China to slash their prices earlier this year in an effort to get customers to buy their products.

“Apple doesn’t have a good go-to-market strategy that fits the rapidly changing Chinese market,” says Nicole Peng, a senior director at the research firm, Canalys. “It also seemed to be slow in reacting to China’s economic slowdown and changes in consumption structure.”

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