China, one of the world's largest markets, is currently experiencing an economic slowdown that is affecting many products, including mobile phones. Against this background, different telephone manufacturers, such as Apple or Xiaomi, have had a drop in sales. According to a recent IDC report, the Chinese market declined 9.7% in the last quarter of 2018, which had a ripple effect on iPhone sales, with a 20% drop.
Xiaomi did not fare very well either, experiencing a 35% decline. However, Huawei cannot say the same. Its dual brand strategy with Honor has done quite well in China and has managed to grow, unlike its rivals, by 23.3%. Likewise, Oppo or Vivo have had a growth in sales of 1.5% and 3.1%, respectively.
While Apple CEO Tim Cook blames poor iPhone sales on the weak Chinese economy, analysts blame it on strategic mistakes and the effects of fierce competition from Chinese Android phone makers. The latest iPhone models, which are mostly priced above 900 euros, face a tough challenge from devices from Chinese brands, which cost about half or a third less.
Apple recently assured that it will lower the prices of the iPhone in markets that have been affected by the strength of the dollar. Although he did not specifically mention any markets, analysts have widely anticipated an official price cut for iPhones in China, as authorized vendors such as JD.com are already selling the new iPhones with a price cut of up to 20 percent. hundred.
For its part, according to IDC, the drop in shipments from Xiaomi was due to a number of factors, including the adjustment of the product line and inventory channels, as well as the renewal of its internal organization. Last January, Xiaomi announced that its range of inexpensive Redmi devices will function as an independent brand to hone its competitive advantage and expand abroad.
Here is the current situation of the 5 largest manufacturers in China:
- Huawei: Sales increase of 23.3% / share of 30%
- Oppo: Increase in sales of 1.5% / share of 19.6%
- Live: 3.1% increase in sales / 18.8% share
- Apple: Decrease in sales of 20% / share of 11.5%
- Xiaomi: Decrease in sales of 35% / share of 10%
