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Home / Technology / Apple may have lost permanently in China, say the latest analysts

Apple may have lost permanently in China, say the latest analysts



Last week, market research firm Canalys downgraded Apple's smartphone sales in China to part of the "Other" category, far from the peak of 2015, where its market share in Urban China was somewhere between 40 and 50 percent] Analyst say now that Apple's descent to the & # 39; also ran & # 39; stakes could be permanent …

Business Insider quoted three different analysts, even the Apple cops Katy Huberty of Morgan Stanley, who An ongoing weakness is predicting in China. "She estimates that the iPhone maker's market share in China can now be as low as 18%.

Apple has always been limited to clients in the so-called Tier 1 and Tier 2 cities – relatively wealthier populations in larger cities The problem of the Cupertino company in China is twofold, say analysts.

First, the tier 1 and "tier 2" cities of a population of 1.3 billion Chinese account for only 2-300 million people Of these, only 150-220 million could afford an iPhone.

Second, although this part of the market is still large, the flagship models of local brands are largely captured by Apple in design and equipment Even though, Apple's market share has plummeted, even in T1 and T2 cities, says UBS.

We consider it doubtful that China is counting on its year.

peak returns in 2015 Brands have caught up, and the upgrade cycles are prolonging; We expect a flat market, give or take some growth depending on the overall market and product cycle. At the peak in 2015, we believe that Apple probably had a 40-50% share in Tier 1 and 2 consumers; we think that this figure is closer to 20-30% today.

The local brands Huawei, Oppo, Vivo and Xiaomi are now dominating Chinese sales, with even premium buyers seeing them as inferior to Apple and Samsung.


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