Apple iPhone sales in China plunged 20% in 4Q: Report
14 February, 2019, 07:20
Apple reported a 19.9% decline in shipments in China for the fourth quarter while Xiaomi fared even worse with a 34.9% decline during the same period.
AppleiPhone sales in China fell 20 per cent year-on-year in the fourth quarter of 2018, while sales for smartphones made by home-grown rival Huawei soared by 23 per cent, data from industry research firm IDC showed on Monday.
This was reflected in Apple's earnings release last month, when it said it booked $13 billion Dollars in revenue from China during the quarter, down 27 percent from the same quarter a year ago.
The new Apple iPhone X are seen on display at the Apple Store in Manhattan, New York, US, September 21, 2018. A slowing economy, lengthening replacement times and the iPhone's hefty price tag contributed to the US giant's decline in China, IDC said.
Oppo and Vivo are also ahead of Apple thanks to minor increases, while Xiaomi saw shipments fall by 35 per cent. Xiaomi, which is expanding into Europe, now has 10 per cent of the market. The company has focused on its push to ramp up its services business-the company's fastest-growing revenue segment-as iPhone sales have faltered. "Apple didn't seem to change its Chinese marketing plans". "China accounts for three in 10 of all smartphones sold worldwide, and it is a market Apple simply can not ignore", Neil Mawston of Strategy Analytics told China Daily. That is despite grappling with an unusually turbulent few months during which its finance chief was arrested on allegations of bank fraud, and the United States marshalled its allies to try to block the company from selling next-generation networking equipment.
Apple missed its own revenue target during the quarter by about $7 billion, and attributed the miss to slow demand in China. Fifth-ranked Xiaomi, a Chinese name that experienced rapid growth just before its 2018 initial public offering, ran afoul of inventory corrections and an internal restructuring, IDC said.
IDC said the market outlook for this year is not optimistic, and that competition for customers will be severe.