IPhone shipments plunge in China as Huawei tightens grip

Apple's iPhone Shipments Plunge in China as Huawei Tightens Grip

"The imbalance between the increasingly severe domestic market environment and Apple's high product unit price has led to the declines of iPhone shipments in Chinese market", IDC said in the Chinese-language research report shared on its official WeChat account.

Apple's October-December shipments suffered a almost 20-percent decline from the same period in the previous year.

China's top electronics retailers slashed prices on the latest iPhones by as much as 20 per cent in past months - an unusual move that illustrated waning enthusiasm for Apple's gadgets.

The California-based firm commanded just a 9.1 percent of the Chinese smartphone sector a year ago, placing it fifth among all makers, Beijing News reported today, citing a publication from market researcher IDC.

Apple iPhone shipments fell 19.9 percent in China during Q4 2018, or Apple's fiscal Q1, according to IDC.

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Strategy Analytics, a global consulting firm, said Apple has an Asia problem, particularly in China. Besides, a higher price contributed to a drop in iPhone sales in China.

Apple also has to cope with the rise of Chinese rivals such as Huawei, which is eroding its share of a market once pivotal to driving its growth. If you recall, smartphone shipments in China slid to 396 million units in 2018 according to Canalys, down from 459 million in 2017.

The declines occurred weeks after CEO Tim Cook announced a reduction in first-quarter revenue guidance owing to economic pressures in China, including slowing demand for iPhones. Samsung, Apple and many others are witnessing the slump.

Now, experts are blaming Apple for pushing up prices while demand for smartphones was falling. To compensate for the loss, Apple is trying to replace phone sales with revenue from services. Sales on the Chinese mainland and in Hong Kong and Taiwan tumbled 27 percent on the year to USD13.2 billion, the firm said on January 30 in its financial report for the first quarter of its fiscal year 2019 - the final quarter of 2018. -China trade war, which is imposing tariffs on many goods being imported into the United States.

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