Apple may lose half its market in China
In the last quarter Apple’s revenue in China grew by 11% and reached $ 8 billion. But, despite it, analysts of Asia not quite comforting, according to Business Insider.
The iPhone X is undoubtedly high, although the model is not affordable for most Chinese users. However, to undermine the position of the Corporation may not the high cost of production, and the aggressive behavior of local competitors such as Huawei. According to research carried out in the territory of China, Apple’s market share in the Chinese market since the beginning of the year decreased from 20,8% to 18.0%.
At the same time decreases and the number of sold devices. If in 2015, the Corporation sold 71 million gadgets, then 2017 is the result of Apple amounted to only 49 million of the devices. According to analysts UBS, in 2018 the number of units sold will drop to 47 million.
“We think that sales in China return to the level of 2015 is quite doubtful. Therefore, as local brands have gained strength and modernized production. The cycles are getting longer.
At the peak of 2015, Apple owned about 40-50% of the market. We believe that today this figure is closer to 20-30%”, — said the analysts of UBS.
Representatives of Morgan Stanley are suggesting that Apple’s share drops to 18%.
The problem is that more than a billion population of China can afford Apple products can not so many people. The number of potential customers of the Corporation is estimated at 200-300 million people, most of them living in Beijing or Shanghai. Besides, Apple has enough distributors and promoters outside of these cities. According to experts, China has only about 4000 promoters of Apple. At that time, local companies like Huawei, Oppo and Vivo, there are about 100 000.
All this has changed the balance of forces on the China market.
The share of local producers grows by a decline in the influence of Apple.
Sales in China are very important for financial results of the Corporation as a whole. Their success depends not only on the loyalty of investors, but also the development of the company.
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