Apple’s iPhone shipments to China down by 20%: IDC report

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

If you recall, smartphone shipments in China slid to 396 million units in 2018 according to Canalys, down from 459 million in 2017.

"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.

Shipments of Apple iPhones to China slid around 20.0% in the final quarter of past year due to the slowing economy and the heavy price tag of the smartphone maker's iPhones, research house International Data Corporation (IDC) said in a report on Monday.

The incredible success of the iPhone X convinced Apple that fans were willing to pay more for its latest smartphones.

The overall Chinese market contracted by 9.7 percent in the quarter, but Apple declined at about twice that pace, research firm IDC said yesterday in a report.


Apple Inc's fiscal first-quarter earnings reveal that the company's struggles in China and in its critical iPhone business will continue, while analysts say the tech bellwether could reduce prices to remedy the situation.

In response, the company has announced that it will be introducing price cuts to markets which have been affected by a stronger U.S. dollar with China likely being one of these markets given that third-party retailers such as JD.com are already selling iPhones at 20% lower prices. This could be attributed to China's economic slowdown, changes in consumption structure and also competition from local rivals such as Huawei and Xiaomi. Apple still provides total revenue by region, though, and its "Greater China" sales - including Taiwan and Hong Kong - were down 27% annually to $13 million, according to CNBC.

Xiaomi, one of the biggest names in the Chinese market, also reported a drop in smartphone sales. That's despite grappling with an unusually turbulent few months during which its finance chief was arrested on allegations of bank fraud, and the USA marshalled its allies to try and block the company from selling next-generation networking equipment.

Xiaomi's shipment slump was due to a number of factors including the adjustment of product line and inventory channels, as well as the revamp of internal organisation, said IDC.

China's smartphone market does not look bright this year, said Wang Xi, a China analyst at IDC. "We have a long way to go before they become mainstream".

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