Apple has been focusing their efforts on the Chinese market since it sees a lot of potential for growth in the world’s most lucrative smartphone market. Who could blame them? But local rivals are giving the company a tough time there. Apple is not doing so well in the country.
They are under increasing pressure from brands like Huawei and Xiaomi, and the latest data shows that the iPhone lost its fourth place position and fell to fifth in the Chinese smartphone market. Wow. That is a tough market.
Research company Canalys has released some data which showed that Apple shipped 43.8 million iPhones in China last year and this represented an 18.2 percent decline year-over-year. This is what caused the iPhone to slide down to the fifth position in the country’s smartphone market. Not good news for Apple. Apple was overtaken by Xiaomi even though that company saw its shipments fall 21 percent to 51.4 million units.
Huawei led the market in China by shipping 76.2 million units last year while Oppo came in second place with 73.2 million units. Vivo rounds out the top three with shipments of 63.2 million units. This has forced Apple to accept that the Chinese smartphone market, while potentially very lucrative, is “not without challenges,” according to CEO Tim Cook. Yes, I think you could say that.
Apple revealed in its December quarter results that its revenues in China were down 8 percent, so this is not a surprise. And so the iPhone is struggling to gain ground in China. It is priced much higher than the Android handsets all of its rivals are selling in the country too.