iPhone X success, but Apple China market share is declining

According to foreign media reports, Apple’s variety of iPhone products launched in late 2017 made its market share in China’s smart phone market increased. In spite of this, the share of Apple’s mobile phone in China’s smart phone market will fall in 2018 due to the declining consumer demand, the reduction of mobile operator subsidies and the fierce competition from Huawei and other domestic Chinese smart phone brands.

In China’s smart phone market, consumers have many local brands of smart phones in their hands, while smartphones such as Apple are considered as a status symbol. Apple’s new iPhone product, introduced in late 2017, has increased its market share in China’s smartphone market.

According to relevant reports, Apple’s fourth quarter in the Chinese smartphone market share of 24.3%, while benefiting from the iPhone 8, iPhone 8 Plus and iPhone X three smart phones to promote the role of Apple’s share of the global smart phone market Reached a record 51%.

However, analysts believe Apple’s share of China’s smart phone market will gradually decline in the coming year. They said Android smartphones such as Huawei and Xiaomi will regain some of their market share. Industry analysts believe Chinese mobile operators are also cutting back on subsidies for handset makers as interest in new devices is declining in the smartphone market.

“We expect 2018 to be a difficult year for Apple’s iPhone smartphone in China, given the slowdown in the overall smart phone market, reduced operator subsidies and increasingly localized competition.” Strategy Analytics, the market research firm, is responsible Neil Mawston, executive director of wireless equipment, said.

Sales decrease

Canalys, a market research firm, said in January that Chinese consumers generally had fewer new purchases of smartphones. China is currently the world’s largest smartphone market with shipments of 459 million units, down 4% YoY in 2017. Market research firm IDC estimates that China’s smart phone market dropped 4.9% last year and is expected to decline another 2% this year.

IDC said in a statement released on February 6 that Chinese consumers think the change in handset technology in 2017 will be “insignificant.” Kiranjeet Kaur, head of market research at the company, said most people are switching to smartphones in 2016, replacing devices in their hand with devices that have more features, such as a bigger screen, a fingerprint reader and a new camera Features. He also added that the high price is also to some extent, limiting the sales of Apple mobile phones.

Operator subsidies decrease

The continued decline of mobile operator subsidies will push consumers to buy Apple mobile phone spending, which may further affect the sales of Apple mobile phones.

According to a report from Market Realist, an investment research site, the Chinese government has demanded that domestic telecoms operators reduce their marketing costs by 20%, a reduction that will include subsidies for smartphones. The report said the lower smartphone subsidies “have the most impact on Apple because the iPhone sales increase is heavily dependent on subsidies.”

China Daily reported that subsidies for the sale of iPhone handsets began in 2014, while major mobile operators, including China Mobile, China Telecom and China Unicom, will reduce sales subsidies for Apple’s handsets.

Local competitors

Analysts believe that Apple iPhone X up to 1,200 US dollars from the price of Chinese consumers daunting. Despite the increasing amount of wealth held in hand, many shoppers are still very concerned about the purchase budget. And China’s native Android smart phone brands are aware of this. Over the past five years, the low selling prices of these Andriod smartphone makers in China and other emerging markets helped boost their market share.

“For example, Huawei has been plowing the Chinese market for many years and its operations have achieved quite high returns,” said Eddie Han, industry analyst at Taipei Institute of Market Intelligence and Consulting. “It is likely that Huawei will continue to consolidate its presence in China’s smart phone market Position. ”

Han added that Chinese brands Oppo and Vivo “did a great job” in expanding sales to tier-two and tier-three cities, while millet “vowed to regain the Chinese market.”

Market research firm IDC said the fourth quarter of last year, four Chinese smartphone maker brands accounted for the top four in the domestic market share. Which Huawei’s market share of 24.3%, Oppo accounted for 20%. Vivo and millet occupy the third largest market share in the market.