IPhone sales in China reportedly tanked 20 percent last quarter

Marco Green
February 12, 2019

Apple and Xiaomi Corp have both encountered a slump in shipments in China in the December quarter, the worst performers among the top five vendors in the country amid an overall shrinking of demand in the world's largest smartphone market. The report further attributes the decline of iPhone sales to three major factors - a slowing economy, lengthening replacement times and the iPhone's hefty price tag.

The figures in the report showed a 19.9 percent fall in Apple's smartphone shipments in the final quarter of 2018, while Huawei's grew 23.3 percent.

The smartphone users of brands like Apple is now contending with a plateauing global market after years of breakneck growth.

However, as per the IDC report, the iPhone maker isn't the worst performing brand as Xiaomi Corp, another China-based company, fared even worse in the final months of a year ago as its shipments plunged nearly 35 percent. And that means that Apple over-emphasized China-an easy target here in the USA these days-in its warning about iPhone sales, both before and during its earnings announcement.

"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.

Sales of the company's flagship product fell by 20 percent compared to the same period one year earlier, research firm IDC reported based on survey and channel check data, according to Reuters. To compensate for the loss, Apple is trying to replace phone sales with revenue from services.

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.

Counterpoint said iPhone sales in the fourth quarter, which includes India's electronics sales-heavy Diwali festival, fell 25 percent on the year, reducing total sales in 2018 to 1.7 million units from 3.2 million a year earlier. As important, it does a much better job of serving the unique needs of the China market than does Apple, which does little to localize its offerings. We've a long way to go before they become mainstream'.

Other reports by Click Lancashire

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