There is no other way to say it: things are not good for
(ticker: AAPL) in China.
The weak shipments of the iPhone have undermined the stocks of Apple in recent months and the problem in the Chinese market has been highlighted by the company itself. And now we have additional data to show how difficult it was.
Sales of Apple's flagship product plummeted by 20% during the fourth quarter of the calendar, a double drop compared to the global sales collapse of the Chinese smartphone market, according to an IDC market research report.
The sharp decline contributed to Apple's disappointing earnings ratio last month and to a 15% decline in global iPhone sales in the December quarter. He also raised some doubts about the long-term strength of the iPhone.
Apple's decline in the world's largest mobile market has been attributed to a slowing economy, the heavy price tag of the iPhone and the extension of replacement cycles among consumers. The Chinese manufacturer Huawei Technologies has gained market share at Apple's expense, despite the arrest of its chief financial officer on allegations of bank fraud.
The latest iPhones start at $ 749 for the iPhone XR and cost $ 1,449 for the iPhone XS with maximum storage space.
At the beginning of January, Apple CEO Tim Cook warned that deceleration in China would drop sales, leading to the company's first reduction in revenues in nearly two decades. The company focused on boosting its services business, the company's fastest-growing revenue segment, with iPhone sales declining. Apple did not respond immediately to a request for comment Monday
Apple reported a 27% decline in total sales to $ 13 billion in China in its December quarter.
Huawei, which has briefly overtaken Apple to become the number one in the world. 2 smartphone brand last year, led all the major brands in China. Its unit shipments increased by 23% in the December quarter, according to IDC. The Chinese Oppo and Vivo have obtained modest earnings to rank second and third respectively, followed by Apple.
Xiaomi (Hong Kong: 1810), which closed fifth, had an even worse quarter than Apple. Its shipments plummeted by almost 35% due to inventory adjustments and internal restructuring, IDC said.
"The environment of the domestic smartphone market in 2019 does not seem very optimistic," IDC senior analyst Wang Xi said in the report. And "5G phones will still be only a small part of the global market – we still have a long way to go before they become mainstream," said IDC.
If Apple e
(South Korea: 005930) hope to reverse the growing global market demand for smartphones, must become more competitive in prices or raise innovation to attract consumers.
Folding screens, 5G-compatible phones and 3D camcorders could revitalize the market, but high-speed phones will not be available until 2020, according to IDC and other market researchers.
Write to Jon Swartz at firstname.lastname@example.org