China is the main reason for Apple’s poor iPhone sales

  • China is the main reason for Apple’s poor iPhone sales

China is the main reason for Apple’s poor iPhone sales

Global giant Apple Inc.'s China smartphone sales plunged almost 20% at the end of a year ago, as local rival Xiaomi Corp.'s downward slide accelerated even more in the world's largest market, according to new data released on Monday.

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.

In the final three months of 2018, shipments of Apple's iPhone dropped 19.9 percent year-over-year while Xiaomi saw its shipments slashed by more than a third compared to the same period a year earlier.

IDC believes that while the Chinese smartphone market is shrinking, Apple is not aware of the problems caused by pushing up the iPhone price.

A separate report from another common industry source, Hong Kong-based Counterpoint, earlier this month confirmed a similar sharp fall in sales in India - another big emerging market where Apple is struggling.

The findings are in line with a report last month from Canalys on the health of the Chinese smartphone market. For the iPhone, revenue dropped 15 percent to $51.98 billion.

In early January, Apple CEO Tim Cook warned the deceleration in China would undercut sales, leading to the company's first revenue outlook cut in nearly two decades. That's despite grappling with an unusually turbulent few months during which its finance chief was arrested on allegations of bank fraud, and the USA marshalled its allies to try and block the company from selling next-generation networking gear. As per the IDC report, Apple was was ranked fourth by shipments in the country during the period, behind China's Huawei, Oppo and Vivo. But with the country announcing its slowest economic growth since 2009, Apple said its sales fell 27 per cent in the holiday quarter.

"The imbalance between the increasingly severe domestic market environment and Apple's high product unit price has led to the declines of iPhone shipments in Chinese market", IDC said in the Chinese-language research report shared on its official WeChat account. "We've a long way to go before they become mainstream", IDC said.