As you might already know, Apple’s revenue took a hit recently and the company attributed that to the weakening economy in China. The sales of iPhones briefly improved in the country after prices were reduced temporarily. Apple analyst Ming-Chi Kuo recently said that he expects the company to leave its worst time behind soon. However, a new report suggests that as far as China is concerned, Apple had a pretty disastrous February and it is not known if it has recovered yet.
iPhone Demand in China Has Reportedly Been Affected Further Because of an Increase in the Value of Dollar
According to the Academy of Information and Communications Technology, the Chinese smartphone market declined more than 20 percent in on a year-over-year basis. Only 13.8 million shipments were recorded for the month, which is the lowest figure since 2013. The demand was majorly affected by the Chinese New Year celebrations.
According to market analyst Xi Wang from IDC, OEMs usually ship an excess number of units in January to commemorate the beginning of a new year and due to glut, February shipments consequently decline. The addition of low demand on top of that exacerbates the whole situation.
According to Counterpoint Research, Apple and Xiaomi were hit the hardest by the disastrous month, while Huawei, OPPO, and Vivo continue to eat at their market share. The demand for premium smartphones has decreased in China as consumers turn to more affordable options from Huawei Nova series and its sub-brand Honor. Similarly, OPPO A series is also doing well in the mid-range market. Xiaomi, despite being an affordable brand, is losing out because other brands offer more value for money because of better specifications.
iPhones, which are already expensive, are now more out of reach for an average consumer in China because of the strengthening dollar. Even flagships from other countries are more affordable than the relatively inexpensive iPhone XR in the far eastern country. Moreover, the general consensus in China is that Apple’s smartphones do not have any innovative features. Of course, this description extends to the whole smartphone industry and has been attributed as a major reason for the current slowdown.
Do you believe Apple’s situation will improve down the road? Tell us your thoughts down in the comments.
Content Courtesy Of WCCFTECH