New low-price and similarly configured devices have decreased the share of the market for Apple Inc.’s iPhones in one of the world’s biggest Chinese smartphone market.
On 2019, January 02, Wednesday after almost two decades, after the company cut its quarterly revenue forecasts, it produced a report on declining sales of iPhone in China. Tim Cook, the CEO of Apple Inc., addressed the fall in share market in a letter to the shareholders of the company and said that its latest revenue guidance would be lowered to $84 billion. Cook added factors that led to this problem, the strength of the dollar, and fewer subsidies from phone service providers. In addition to this, the existing customers are sticking with older models via cheaper battery replacements.
On an average, monthly salary of a white-collar Chinese is nearly 7,850 Yuan, which means that a new iPhones cost more than a month of salary. Apart from pricing, some Chinese consumers are attracted to competitors’ phones because of their combination of unique camera systems and back covers.
The sales of iPhones are plunging at the premium smartphone market. This is due to increased competition and slowing growth rates in the Chinese marketspecially when the firm released its latest smartphones.
Apple trying to address Declining Sales Concerns
Apple understood its pricing issue in China, which is too high, and it has decided to increase the iPhone trade-in promotion from the U.S. to China at the end of December. Apple now advertises the iPhone XR for 4,399 Yuan on the price of an iPhone 7 Plus on its website in China. Lastly, it is not an innovation issue.