Apple Drops to Fifth in China’s Mobile Market | Bloomberg

[Martian]

This is one of the biggest business news stories of the year. Apple is losing market share in China, which is the world's largest smartphone market. In contrast, Huawei has extended its lead as the market leader in China to 17.3% of total smartphone shipments.

At a more fundamental level, the question is whether the fall of Apple and the rise of Huawei is a replay of the IBM PC vs. Apple Macintosh.

Thirty years ago, Apple sold a proprietary closed-system personal computer called the Macintosh. It lost to the open-system IBM PC and clones.

Today, we have another proprietary closed-system Apple iOS running on iPhones. The competitor is the open-system Android that operates on Huawei smartphones.

The factors are exactly the same as thirty years ago. Apple charges a premium for its proprietary devices. Huawei has caught up in the hardware technical specifications and features. The Huawei smartphone matches the Apple iPhone in capability, but the Huawei smartphone costs noticeably less.

The result is the expected loss of Apple market share in China, while Huawei grows larger. The important question is whether Apple will change strategy. If Apple maintains premium pricing like thirty years ago, it will become a marginal player in China. On the other hand, if Apple starts cutting prices then it could become very competitive.

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Apple Drops to Fifth in China’s Mobile Market as Locals Rise | Bloomberg Technology

 

[Bruce Williams]

It' true that Apple is a great smartphone brand their market share in China has been fallen down with the rise of local smartphone brands like Vivo, Readmi, Realme, Xiaomi, and Oppo. I'm an Oppo user and currently using Oppo A37. It's not that good and I'm thinking of buying Oppo F7. I'm in Pakistan right now and want to buy that from here. Does anyone know a platform where I can check Oppo F7 price in Pakistan?

 

[rockdog]

The Chinese government is doing quite smart way:

Let top brands sell and make products in China > build supply chain locally > Chinese suppliers grow > Chinese brands grow.

Now Chinese government using the same strategy to Telsa. The Telse will eat ABB （audi，BMW，Benz）share in China anway, won't hurt local brands too much. But Telsa will make sure 99% components from local suppliers in two year.

Let's see which local brands will on.

 

[Armand2REP]

The Chinese government is doing quite smart way:

It is smart to let the smartphone market crash? Smartphone sales are down 20% across the board. People aren't buying iPhones because they don't have the money opting for budget handsets.

Same story for automobiles that have crashed 18%. This is all before coronavirus.

 

[rockdog]

It is smart to let the smartphone market crash? Smartphone sales are down 20% across the board. People aren't buying iPhones because they don't have the money opting for budget handsets.

Same story for automobiles that have crashed 18%. This is all before coronavirus.

0. "Smart" means government Industry Policy, nothing to do with economic situation. Now do you see any French brand mobile phone in France? Oh， sorry i forgot there is Alcatel mobile, and my company also contribute with it on project base.

1. 2019, global smartphone sales 1.412B, 2018 was 1.456B;
China: 369 million in 2019, drops 7% comparing 2018.
https://new.qq.com/omn/20200202/20200202A0LUK400.html

Please find right data before disucssion.

2. Huawei's high end ($USD600+) mobile dominates 80% share since August 2019 in China
https://baijiahao.baidu.com/s?id=1646020161490444038&wfr=spider&for=pc

I bought P30 with $600, Mate 30 Pro with $700 in 2019, leave away with iPhone for years, the new local trend here is mid aged and mid class male likes to use Huawei, Xiaomi, but youngster especially fashionalle lady still loves iphone


By your logic, people don't money for iPhone but still have money for expensive Huawei?

3. By the end of 2019, China sold 5milion 5G mobile, none of it from Apple. That's another reason why iPhone share drops.

4. India growth drops from 7% to 5%, the cars sales drops almost 30%; So i don't suprise 18% drop for China.

BTW, guess what's the French brand's share in China now and how many cars they sold within one month? I will try to find data to you if you like. I hope it's better than 18%.