Apple continues to lose market in China to local brands;  company revenue over there falls 10%

Apple continues to lose market in China to local brands; company revenue over there falls 10%

Apple is in a growing relationship with China; visiting, investing, following its laws … She now has even a specific director for the region.

And as much as it manages to remove a very considerable portion of its total revenue from the country, there is no supremacy of the Apple there, as possibly its intention. In fact, as revealed in the financial results for its last fiscal quarter, just yesterday, it is the opposite of that.

Even with quarterly revenue of $ 45.4 billion, Apple continues to have the country as its weakness, especially in Greater China. That is, basically, the company yielded 10% less at last year’s location here, and a lot of that is due to the loss of iPhone audience.

Comparing to the same period last year, Apple’s revenue in Greater China fell from $ 8.848 billion to $ 8.004 billion (-10%), according to Apple documents sent to the United States Securities and Exchange Commission.

When compared to the previous fiscal quarter, the company fell much more, coming from US $ 10.726 billion (-25%). Still, this period of the year is usually slower, since there are no major launches and there is a strong expectation for the new iPhones.

China has already generated far more profits for Apple than it currently does. For example, in 2015, on-site revenue reached $ 16.8 billion, double what it is today. And data published by Canalys referring to the second quarter of 2017 may give us the explanation for this fact.

Chart with the largest smartphone manufacturers in the world

According to the analytics firm, Apple is second in smartphone sales worldwide, having sold 41 million units in the last quarter. Who is in the lead, as expected, is its biggest rival, Samsung – with sales of 79 million units. Third, fourth and fifth places, respectively, are the Chinese Huawei, Oppo and Xiaomi.

However, the curious fact is that, if in the world ranking the Chinese are losing to Apple and Samsung, in their home territory they are very successful.

In China, four local brands took the lead. Huawei, in first, sold 23 million units, followed shortly after by Oppo, with 21 million units sold. Vivo (not to be confused with our operator) was in third place, with 16 million units delivered, and Xiaomi secured the fourth place, selling 15 million smartphones in the country.

Apple came in fifth in the Chinese ranking, but still managed to get ahead of Samsung. The main reason why it does not win the market so much is the prices charged; while the other manufacturers are keen to launch more affordable options, the Apple continues to have quite high prices compared to the others.

Still, Canalys says that the Chinese smartphone market as a whole has actually decreased by around 3%, which has affected both the sales of Chinese brands, and especially foreign ones, such as Apple. Perhaps Apple’s numbers in the Chinese market will improve with the announcement of the new iPhone, who knows?

via TechCrunch: 1, 2