Published: Thu, February 14, 2019
Economy | By

IPhone Sales in China Plunged 20 Percent Last Quarter: IDC

IPhone Sales in China Plunged 20 Percent Last Quarter: IDC

China's smartphone shipments are forecast to continue to fall over 10 percent year-on-year to below 80 million in Q1 following an around 20 percent decline in Q4 2018, according to Digitimes Research.

United States research company IDC said about 397.7 million units were shipped in China previous year, down 10.5 percent from 2017.

Apple revised its guidance ahead of that report in early January, when it said a weakening economy in China and the strength of the US dollar were to blame for weaker-than-expected iPhone revenue.

"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", the company as quoted as saying by the SCMP.

Meanwhile there is intense competition between major manufacturers like Apple and Samsung and with local vendors like Huawei, Xiaomi, Oppo and OnePlus.

In response, the company has announced that it will be introducing price cuts to markets which have been affected by a stronger USA dollar with China likely being one of these markets given that third-party retailers such as are already selling iPhones at 20% lower prices.

Even Nicole Peng, a senior director at Canalys believes that "Apple doesn't have a good go-to market strategy that fits the rapidly changing Chinese market".

Dissipating Chinese demand compounds the problems at Apple, which is struggling to deliver on another hit device as its marquee gadget loses some of its cachet.

The figures in the report showed a 19.9 percent fall in Apple's smartphone shipments in the final quarter of 2018, while Huawei's grew 23.3 percent. 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. The Chinese slowdown was also the driving factor behind Apple's first revenue outlook cut in nearly two decades. Cook, however, emphasised the long haul, highlighting 19 per cent growth in services revenue, the Bloomberg report said. Apple also didn't seem to work on its Chinese marketing plans -- an area that needs constant updating.

Huawei, which briefly surpassed Apple to become the world's second-biggest smartphone brand in 2018, remains the runaway leader at home.

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