Apple loses its shine in China

[TaiShang]

Apple China sales fall 30%
China Daily, October 27, 2016

Apple Inc's third consecutive decline in quarterly revenue and profit highlights the challenges the US tech giant faces in China, as local smartphone vendors work hard to experiment with new technologies and designs, analysts said on Wednesday.

Apple said on Tuesday it saw a nearly 30 percent decline in its China revenue in the quarter ending September, the highest fall among all regions, due to tepid demand for its iconic iPhones.

The firm recorded $8.79 billion in revenue in China. Last year, the figure was $12.51 billion.

Apple CEO Tim Cook said consumers were excited about the firm's latest model iPhone 7 series, which would have a good performance in the next quarter.

"We are very bullish on China," Cook said in a follow-up earnings call.

The result also marked Apple's first annual sales decline since 2001. Its annual revenue fell to $216 billion in the 2016 fiscal year ending September, from a record $234 billion in 2015.

Roger Sheng, research director at Gartner Inc, said Apple's decline in China is highly likely to continue, because so far the iPhone 7 has not generated a very good sales momentum.

"Many consumers already have quality handsets from local players and they don't have immediate need to upgrade their devices," Sheng said.

Apple releases a flagship model once a year while local rivals such as Huawei Technologies Co Ltd launch a new product every one to two months, which puts them in a better position to experiment with new technologies, he added.

Xiaomi Corp, for instance, unveiled its Mi Mix premium model on Tuesday, whose display covers almost the entire front, developed in partnership with famous designer Philippe Starck.

Huawei turned to camera maker Leica to improve the photo-taking capabilities of its handset P9, which has proved very popular among consumers.

"They have outperformed Apple in some hardware components," said James Yan, research director at Counterpoint Technology.

Apple's slide came shortly after Samsung scrapped its Galaxy Note 7 handset due to battery explosions, offering good opportunities for rivals to expand their share in the high-end market.

Nicole Peng, research director at Shanghai-based consultancy Canalys, said: "Apple will see a promising fourth quarter with the absence of its direct competitor Samsung in the high-end segment, as long as it ensures the supply of iPhone 7 plus."

**

There is no practical way to stop the monopolistic position of China's tech behemoths. Youngsters are no more interested in that boring, grandpa era phone brand.

 

[ohmrlobalobayeh]

The firm recorded $8.79 billion in revenue in China. Last year, the figure was $12.51 billion.

Apple CEO Tim Cook said consumers were excited about the firm's latest model iPhone 7 series, which would have a good performance in the next quarter.

"We are very bullish on China," Cook said in a follow-up earnings call.

Revenue last year:12.51 billion
Revenue this year: 8.79 billion
Tim Cook: We are making more money!

 

[TaiShang]

Revenue last year:12.51 billion
Revenue this year: 8.79 billion
Tim Cook: We are making more money!

This is as interesting as China's continuous collapsing.

As the economy expands qualitatively and quantitatively, China collapses.

As Apple loses revenue, it makes more money.

 

[Zibago]

This is as interesting as China's continuous collapsing.

As the economy expands qualitatively and quantitatively, China collapses.

As Apple loses revenue, it makes more money.

Blackberry 2.0
RIP Iphone in advance

 

[AndrewJin]

Oppo and Vivo top Chinese smartphone sales in Q3 of 2016

Chinese smartphone vendors Oppo and Vivo have become the two top brands in China for the first time in the quarter ending in September, with their biggest competitor Huawei，which held the top spot for several quarters, falling to third place, a new report said.

According to data from Counterpoint Technology Market Research, Oppo saw a 82 percent year-on-year growth in shipments between June and September, accounting for 16.6 percent of market share in China.

Huawei's growth slowed to 4 percent, with 15 percent of the market, while Vivo recorded the highest growth in China during the quarter as the demand for its shipments rose 114 percent annually, accounting for 16.2 percent of the market.

James Yan, research director at Counterpoint Technology, said, "This quarter for the first time ever, we have seen new market leaders for the top two spots. Oppo and Vivo collectively now control almost one third of the Chinese smartphone market."

Oppo's performance was a result of strong demand for its flagship Oppo R9 which became the top selling model in China for the entire quarter surpassing the popular iPhones which held the top spot for years. Oppo's low-end A59 and A37 models are also driving strong sales in tier-3/4 cities adding to the overall increased sales.

Senior Analyst Mengmeng Zhang, said, "Huawei's upcoming flagship Mate series refresh should drive some increase in the premium segment with opportunity to fill in the gap left by the Galaxy Note 7 and thus should drive a halo effect for the mid-tier Honor and Nova series to maintain its spot in top three rankings."

 

[TaiShang]

Apple being pushed around by local brands
China Daily, February 8, 2017

Chinese smartphone brands Oppo and Huawei are tightening their grip on the world's biggest market, grabbing local share and squeezing out Apple Inc and Samsung Electronics Co.

After including vivo Mobile Communication Technology Co, Chinese vendors held the top three slots and accounted for 48 percent of shipments in the country during 2016, research firm International Data Corp said.

With a lineup of flexible and curved-screen devices, they look set to dominate the market in 2017. A decline in Apple shipments in the fourth quarter highlighted how the iPhone 7 failed to make as big a splash in the face of escalating competition.

Apple and Samsung have steadily ceded ground in China to aggressive local manufacturers since Xiaomi Corp came on the scene around 2011. Xiaomi itself was ranked fifth in 2016, as Oppo Electronics Corp, Huawei Technologies Co and vivo phones were the top three sellers, accounting for 48 percent of shipments last year and relegating the US company to fourth spot, IDC said in a report released on Monday.

"Even though the new black-colored iPhones caught the attention of consumers, overall, the new launches did not create as much of a frenzy compared to the past," IDC said in its report.

Chinese vendors are marketing higher-end devices that appeal to consumers seeking quality and innovation. IPhone shipments dropped 23.2 percent in 2016, shrinking Apple's market share to just 9.6 percent－the lowest in about two years. Samsung didn't even figure in the top five.

China had for years driven Apple's spectacular growth even as smartphone demand faltered elsewhere. But the country's slowing economic growth and the ascendancy of cheaper but just-as-good local alternatives has taken its toll.