Apple losing out on smartphone sales in China to local brands; Cupertino sets sights on India

Apple losing out on smartphone sales in China to local brands; Cupertino sets sights on India
China is the largest market in the world for smartphones, and is a very important market for Apple and the iPhone. But the bloom is off the rose in the country as far as Apple is concerned. Last quarter when the company reported a year-over-year decline in iPhone sales for the first time in history, sales to the Greater China region (which includes Hong Kong, Macau, Taiwan and Mainland China) declined 26% to $12.49 billion.

According to Counterpoint Research, iPhone sales accounted for 10.8% of the Chinese market last quarter, down from 12% during the same time last year. Bloomberg noted that the decline "dropped (Apple) to fifth place in Chinese smartphone shipments, losing ground in its biggest overseas market."

Local brands are taking business away from Apple. 53% of the smartphones rung up in the country last quarter were produced by companies very familiar to Chinese consumers such as Xiaomi, Huawei, Vivo, and Oppo. Meanwhile, Apple has turned its attention to what will soon be the second largest country in the world for smartphone sales, India.

Last quarter, iPhone sales in the country rose 53% year-over-year. The only problem with the Indian market is the low per capita income of $1500 USD. Unable to afford high-end models, Indian consumers are sticking to lower priced handsets. 70% of new phones bought in India last year were priced at $150 or less. Meanwhile, the top selling iPhone in the country is the Apple iPhone 5s, priced at $300. In a bid to lower prices on its handsets, Apple sought permission to sell refurbished iPhones in India. However, the government put the kibosh on Apple's plans by refusing to allow the refurbished units inside the country.


via BGR

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27 Comments

1. IronTech

Posts: 153; Member since: May 27, 2016

Chinese people aren't stupid anymore. Now let's go to India. -- Apple logic

15. pagal

Posts: 49; Member since: Jul 04, 2016

Chinese people still like idumb. But now the copied ones.

18. htcisthebest

Posts: 435; Member since: Nov 15, 2011

True. But didn't Apple also copied technologies from other companies?

22. cncrim

Posts: 1586; Member since: Aug 15, 2011

Additional note, I want Apple profit margin slip to 50% or little under. At this point she will get pressure to bring more innovations to the table. I believe once it get to this point she will compel to open IOS to 3rd party.

23. marorun

Posts: 5029; Member since: Mar 30, 2015

agreed but thats wont happen because they will just continue to increase the phone price to keep increasing profit margin and most ppl will continue to buy. Its will take a long time for this to become critical and really force them because humans are a bit idiot sadly.

27. Leo_MC

Posts: 7203; Member since: Dec 02, 2011

Apple has not open its software to 3rd perties even when it was almost bankrupt, there is no reason to do it now.

2. 27satz

Posts: 158; Member since: Apr 28, 2014

Apple can't compete with other Indian brands with their expensive pricing strategy.

3. Jimrod

Posts: 1605; Member since: Sep 22, 2014

I think more to the point - the current iPhone line-up is coming to the end of an "S" cycle lifespan, it's a 2-year old product in many ways. Anyone who might want an iPhone in recent months will most likely be waiting for the next version (even if it does turn out to be another "S" version!).

16. j2001m

Posts: 3061; Member since: Apr 28, 2014

Hm, Samsung coming to an end of its design cycle, oh look sales are down and going down, hm oh wait sales are up big time, hm I think you very wrong about iPhone. Sales, there are now just better phone like the one plus 3 that cost way less , but Samsung sales are up, wow Samsung look to be king when you look at the android cheap phones like the oneplus and there sales are up, if Samsung had the same locked full app list OS then they make iphome sales look very bad That because they offer the best hardware and give way more than Apple does and they are even selling more edge phones so users can look way more cool than iphome users, Apple had it easy for years as all the blog site said Samsung sold cheap looking phone, now Apple does next to the s7 edge

21. marorun

Posts: 5029; Member since: Mar 30, 2015

Apple do next to many high end android flagship in fact :)

4. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Apple profit in smartphone sales are still 90% of the whole smartphone global market. Don't really understand what they are fussing about. Perhaps their greed till outweigh their enormous profits, tenfold.

19. htcisthebest

Posts: 435; Member since: Nov 15, 2011

That number is bound to drop. Just wait and see.

24. marorun

Posts: 5029; Member since: Mar 30, 2015

Not perhaps it is greed greed greed. they want to make more overall profit and bigger margin year after year. Thats sadly what most company aim as its the way economic system work in today world.

5. Scott93274

Posts: 6031; Member since: Aug 06, 2013

I think sales of this year's iPhone might actually be lower yet again state side. I've been saying that it's going to go up, but if the rumors are correct and Apple is for whatever reason holding off on releasing a massive update to this year's model in favor of waiting for the 10 year anniversary of the iPhone, then there might be a large number of people who opt to skip this year's model for next year's. Pricing is also going to be an issue in the two regions touched upon in the article.

9. Jimrod

Posts: 1605; Member since: Sep 22, 2014

Thing is most of the public won't really know about Apple's plans for next year and just want the latest model... However it may well harm Apple if that latest model doesn't appear to offer anything new or interesting. I'll most likely get it because I'm due my upgrade in September, can still get around £270 for my iPhone 6 and the battery has started getting a bit flaky after 500 cycles (my wife still has my iPhone 5 with no problems though!), if my battery was still perfect I'd hold out.

25. marorun

Posts: 5029; Member since: Mar 30, 2015

Jimrod thats if they deal with crappy salesman looking for easy sales. I will make sure they are well informed thats there will be lil difference between 6S and 7 just like i did from 6 to the 6S ( and most listen because they get the 6 instead of the 6S )

6. ibend

Posts: 6747; Member since: Sep 30, 2014

and iPhone7 wont save them [off topic] its just me, or this comment section is getting quiet lately? :-/ if your comment box (somehow) dissapear (just like me yesterday), try to disable adblock or just turnoff cosmetic filtering on uBlock (ads still blocked this way :D)

8. Jimrod

Posts: 1605; Member since: Sep 22, 2014

Yup, have to disable adblock on PC to comment the last day or so... If they've put something new in to cause that it'll result in less comments, less clicks, less revenue anyway!

26. marorun

Posts: 5029; Member since: Mar 30, 2015

All ads still blocked for me and no issue with comments. Are you guys using chrome?

12. Alpha1

Posts: 100; Member since: Jul 06, 2016

Thanks fort the tip. I will be leaving ad block on and won't be commenting here much anymore.

7. pagal

Posts: 49; Member since: Jul 04, 2016

The only problem with the Indian market is the low per capita income of $1500 USD. And the iPhone itself cost that much in India.So how Apple is gonna boost their sales.

11. LetsBeHonest

Posts: 1548; Member since: Jun 04, 2013

It is the rich minority apple would be focussing (still large in number bcuz of the large population). Also India is one of the country with highest price tag for an iPhone. Low income people can enjoy affordable monstrous smartphone such as Redmi note 3, Le2 etc etc etc.. Besides they can do more than 90% of what a flagship can do and can satisfy the want of a normal person.. Thnx to such brands..

10. Barney_stinson

Posts: 672; Member since: May 30, 2016

They dont have to reach to normal population!! They can deal with CEO's , cricketers , celebs etc! And believe this even if a country is not developed!! These big rich people's are always there!!

13. mammary.moon

Posts: 31; Member since: Jun 30, 2016

So why does the indian government ban Apple from selling refurbished iPhones ? The indians cant afford brand new one so selling them at 30% off with a one year original apple warranty is a good idea . Besides , many indians bought 3rd party refurbished ones with shady warranty

20. htcisthebest

Posts: 435; Member since: Nov 15, 2011

You have a nice profile picture bro ;)

17. htcisthebest

Posts: 435; Member since: Nov 15, 2011

I bet the market condition is worse for Apple in India. I mean average income is at least higher in China than India.

28. syed_itsa

Posts: 50; Member since: Feb 05, 2015

Therefor companies are investing in india. They have margin in profit and people buy with Cash not like in USA Plastic provider country.

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