Apple loses its shine in China

[beijingwalker]

Apple Drops to Fifth in China’s Mobile Market as Locals Rise

David Ramli Davidramli
July 6, 2016 — 6:30 PM CST

• Huawei extends market leadership with 17.3% of shipments
• Oppo nearly doubles share to be fastest growing major brand

Apple Inc. dropped to fifth place in Chinese smartphone shipments, losing ground in its biggest overseas market in a fresh blow for the technology giant.

IPhones made up 10.8 percent of devices sold in May, down from 12 percent a year earlier, according to Counterpoint Research. By comparison, Chinese vendor Huawei Technologies Co. increased its lead with 17.3 percent.

Chief Executive Officer Tim Cook has publicly touted the importance of China, where the company is combating a slowing domestic economy and local vendors with increasingly popular devices. The launch of the cheaper iPhone SE was meant to boost Apple’s popularity in developing markets and Cook met with China’s vice premier Liu Yandong in May.


Instead, it has suffered commercial, legal and regulatory setbacks in recent months leading to lawsuits and key products getting shut down.

Local brands Huawei, Vivo, Oppo and Xiaomi are now the top four smartphone makers in China with a combined market share of 53 percent, according to Counterpoint research director Neil Shah. Oppo almost doubled its market share to 11 percent.

Apple’s sales in Greater China, which also includes Taiwan and Hong Kong, fell 26 percent during the March quarter compared to a year earlier, amid a slowing market.

Apple lost a patent case against a little-known Chinese rival relating to its iPhone 6 and iPhone 6 Plus, along with a trademark dispute relating to the use of ‘IPHONE’ on leather goods. The company was forced to shut down its iTunes Movies and iBooks services in April - six months after they were first permitted.


Its app store and other services are also being increasingly regulated. The Cyberspace Administration of China last week released rules stating app stores must ensure the commercial viability of developers, who in turn must monitor customer usage.
http://www.bloomberg.com/news/artic...fifth-in-china-s-mobile-market-as-locals-rise

 

[cnleio]

Last years Chinese ppl think the Apple Iphone as some luxury , ppl dream to own one ... but now in China Iphones is everywhere, recent years Chinese bought Iphones more than Apple sold in American.

When the luxury Iphone is everywhere on China streets, Chinese customers returning to rational and buy more domestic smartphones with good quality and cheaper price than Iphone.

The main reason i think, it's Iphone in China isn't the luxury anymore and the QUALITY of domestic smartphone is UP ~!

 

[-xXx-]

Chinese phone have improved a lot !! The build quality is good now.

Not long before they look like tin boxes with speakers.

 

[KediKesenFare3]

Huawei is not trustworthy:

http://www.androidpolice.com/2016/0...le-but-exif-data-reveals-4500-camera-took-it/

 

[Mysticbuddy]

Last years Chinese ppl think the Apple Iphone as some luxury , ppl dream to own one ... but now in China Iphones is everywhere, recent years Chinese bought Iphones more than Apple sold in American.

When the luxury Iphone is everywhere on China streets, Chinese customers returning to rational and buy more domestic smartphones with good quality and cheaper price than Iphone.

The main reason i think, it's Iphone in China isn't the luxury anymore and the QUALITY of domestic smartphone is UP ~!

Well that's not true. Even the Korean giant Samsung is not on par with apple in regards to build quality.

The truth of the matter is IPhone is looking for another destination to make the base components. What it means that Apple has diversified its procurement from other suppliers after the uproar over the condition of workers in China. It only integrates the phone in China. But major components are coming from Taiwan, Philippines, Myanmar, India etc. it is also planning to make/ integration of phones in India. They also published a news that there could be a slowdown in jobs if the Apple leaves the made in China mark on its phones. So to teach them a lesson there is another patent case going on which states that the other company made the iPhone 6 before Apple did and are claiming royalty. Apple will surely win but now they know there is a hard road ahead.

Good for us they are pushing for iPhone 7.

 

[Grevion]

Last years Chinese ppl think the Apple Iphone as some luxury , ppl dream to own one ... but now in China Iphones is everywhere, recent years Chinese bought Iphones more than Apple sold in American.

When the luxury Iphone is everywhere on China streets, Chinese customers returning to rational and buy more domestic smartphones with good quality and cheaper price than Iphone.

The main reason i think, it's Iphone in China isn't the luxury anymore and the QUALITY of domestic smartphone is UP ~!

That is true. Iphone once used to be a luxury in India too now it is just an device with an os that is not an android.
Nowadays the basic criteria to select an smartphone is good ram, good internal memory, good camera, quality of the phones and above all a satisfying user experience.

 

[cnleio]

Well that's not true. Even the Korean giant Samsung is not on par with apple in regards to build quality.

The truth of the matter is IPhone is looking for another destination to make the base components. What it means that Apple has diversified its procurement from other suppliers after the uproar over the condition of workers in China. It only integrates the phone in China. But major components are coming from Taiwan, Philippines, Myanmar, India etc. it is also planning to make/ integration of phones in India. They also published a news that there could be a slowdown in jobs if the Apple leaves the made in China mark on its phones. So to teach them a lesson there is another patent case going on which states that the other company made the iPhone 6 before Apple did and are claiming royalty. Apple will surely win but now they know there is a hard road ahead.

Good for us they are pushing for iPhone 7.

LOL ... how much the price of Apple Iphone sold in foreign market ... about 1,000 USD per piece that's not a cheap price in market. If ur word is work, Iphone must sell well in Africa in India not in China, how many Iphones can sell out also depend on local consumption-level. As ever in Foxconn, i just tell u the Apple isn't easy to leave China as long as major components produced from mainland China companies not in Taiwan/ Philippines/ Myanmar / India / Vietnam, if other country can do better than Chinese doing in China the Apple can move the produce line from China to there, but not TODAY !

 

[Beidou2020]

Apple is starting to lose its 'wow' factor.

Apple was at its best when Steve Jobs was in charge. Once he passed away, not much changed for the first 2-3 years as new products were already set.

Now people realise Apple is nothing special. It's iPhones are no longer above its competitors like Samsung. 60% of Apple revenue comes from iPhones.

iPhones are still nice, but they no longer have the x-factor they used to have compared to the others.

 

[rott]

Well that's not true. Even the Korean giant Samsung is not on par with apple in regards to build quality.

Seriously? You don't know what you're talking about. You dont really know the definition of quality. But I'll leave it at that. Too lazy to give free lessons on the internet.

The truth of the matter is IPhone is looking for another destination to make the base components. What it means that Apple has diversified its procurement from other suppliers after the uproar over the condition of workers in China. It only integrates the phone in China. But major components are coming from Taiwan, Philippines, Myanmar, India etc. it is also planning to make/ integration of phones in India.

Again, seriously? Please provide a link as to what part does India make for the iPhone. I am rather curious.

Here a link for you.
http://indianexpress.com/article/te...nt-make-apple-iphones-in-india-any-time-soon/

 

[TaiShang]

iDrop: iPhone's market share in China drops to 5th

iPhone's market share in China drops to 5th
China Daily, July 7, 2016

The performance of Apple's iPhone in China has worsened to 11 percent market share in May 2016 with its ranking dropping from third to fifth in the first quarter, according to a report from TechWeb.com.cn, citing a latest research from analyst firm Counterpoint Technology Market Research.

TechWeb said that Apple Inc's revenue in Greater China region fell 26 percent last quarter (as of March 26), in which the company suffered its first-ever quarterly corporate revenue decline since 2003.

The second quarter witnessed Apple's revenue decline 13 percent year-on-year and plunge to $50.6 billion. Its net profit decreased by 23 percent year-on-year to $10.5 billion.

Hong Shibin of Internet Society of China is an Internet marketing expert. Hong says Apple's biggest weakness is its product.

"Compared with the classic iPhone 4S and 5S, the iPhone 6S and iPhone SE lack innovation highlights," said Hong.

By comparison, Huawei Technologies Co Ltd's market share continues to grow, ranking first in China's smartphone market.

In addition, Chinese domestic smartphone manufacturers Huawei, Xiaomi Corp, Guangdong OPPO Mobile Telecommunications Co Ltd and Vivo Electronics Corp together captured 53 percent share of the overall Chinese smartphone market.

***

Significant points:

Impression that the product lacks innovation.

First ever revenue loss since 2003.

To the contrary, China's innovation power houses such as Huawei and Xiaomi are capturing further market share thanks to innovation, product variety and cool image, which is significant.

Some of youngsters feel iPhone belong to their aunty and uncle time. So mp3ish.

 

[Hamartia Antidote]

Where's Lenovo? ZTE? Coolpad? These were big names. Now they aren't in the top 5 either.

 

[airmarshal]

The fact is after death of Steve Jobs, Apple is just another company. No difference between , 5 and 5s, 6 and 6s. With new iPhone 7, there wont be much difference except new colors, higher resolution. All cosmetic things. Apple stopped taking technology leaps after Jobs died.

 

[cirr]

Who in his right mind would pay 1000 USD for a machine the equivalent of which you can have for 300 USD?

 

[C130]

Who in his right mind would pay 1000 USD for a machine the equivalent of which you can have for 300 USD?

the same type of people who would buy a pair of jeans for $300
or $100 for a white tee-shirt.

iDrop: iPhone's market share in China drops to 5th

iPhone's market share in China drops to 5th
China Daily, July 7, 2016

The performance of Apple's iPhone in China has worsened to 11 percent market share in May 2016 with its ranking dropping from third to fifth in the first quarter, according to a report from TechWeb.com.cn, citing a latest research from analyst firm Counterpoint Technology Market Research.

TechWeb said that Apple Inc's revenue in Greater China region fell 26 percent last quarter (as of March 26), in which the company suffered its first-ever quarterly corporate revenue decline since 2003.

The second quarter witnessed Apple's revenue decline 13 percent year-on-year and plunge to $50.6 billion. Its net profit decreased by 23 percent year-on-year to $10.5 billion.

Hong Shibin of Internet Society of China is an Internet marketing expert. Hong says Apple's biggest weakness is its product.

"Compared with the classic iPhone 4S and 5S, the iPhone 6S and iPhone SE lack innovation highlights," said Hong.

By comparison, Huawei Technologies Co Ltd's market share continues to grow, ranking first in China's smartphone market.

In addition, Chinese domestic smartphone manufacturers Huawei, Xiaomi Corp, Guangdong OPPO Mobile Telecommunications Co Ltd and Vivo Electronics Corp together captured 53 percent share of the overall Chinese smartphone market.

***

Significant points:

Impression that the product lacks innovation.

First ever revenue loss since 2003.

To the contrary, China's innovation power houses such as Huawei and Xiaomi are capturing further market share thanks to innovation, product variety and cool image, which is significant.

Some of youngsters feel iPhone belong to their aunty and uncle time. So mp3ish.

To the contrary, China's innovation power houses such as Huawei and Xiaomi are capturing further market share thanks to innovation, product variety and cool image, which is significant.


what innovation are you talking about for Huawei and Xiaomi?? what exactly have they done with their phones that Apple hasn't done?

 

[cirr]

the same type of people who would buy a pair of jeans for $300
or $100 for a white tee-shirt.

I know I know there are many people with bumped head where you are from.