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Apple's China issue may require a new iPhone type

Apple's China problem may require a new iPhone designed specifically for the country, say some former Apple executives.

Apple has already taken a small step in this direction, with a physical dual-SIM model of the iPhone XS / Max only available in China. It is widely believed that Apple's decision to offer gold-colored phones was made by China and the Middle East. However, it is suggested that the company may have to do much more …


The Apple Problem

The problem that Apple has in China is undeniable. Apple's sales were down 27% in the quarter and were responsible for the warnings that led to a 30% decline in the company's share price. In the letter with the graduated forecast, which was confirmed in the subsequent earnings report, CEO Tim Cook has identified China as a particular problem.

Cook also points to China as a painful point for Apple's first-quarter results [saying]while China sales account for "more than 100 percent of our worldwide sales decline year-over-year."

Part of that is the Chinese economy , Overall, smartphone sales fell by 12-15.5%. The fall of Apple, however, was steeper.

Apple is also pricing in to some extent, promising to absorb price increases caused by currency fluctuations in major overseas markets, and it is likely that China will be on the list.

Specific iPhone

But the WSJ cited former Apple executives, indicating that this is not enough.

Some former employees and analysts are proposing a more radical change: End Apple's one-size-fits-all markets are striving for products and trying to aggressively differentiate their gadgets and software in China from other offerings. […]

Over the years, the company was designed by Apple in California. Assembled in China. "Ethos meant that employees in China could not always deliver iPhones that matched well with local apps and user habits."

"They do not adapt fast enough," said Carl Smit, a former Apple executive in Asia Who now a strategic sales consultant. "These apps and systems communicate through the people of China. If you do not have seamless integration, the Chinese manufacturers have an advantage. "[…]

" We would say, 'Here's what my consumer wants'. "Said Veronica Wu, who previously worked in sales for Apple in China Before becoming Hone Capital's venture capitalist, Apple's product executives were "a black box," she said, and the phones introduced later did not have the features that grew in importance in China.

The time it took Apple to get one Introducing a dual-SIM model was a given example of the company's slow response to local brands such as Xiaomi and Huawei, with more than 90% of smartphones sold in China having two physical SIM cards, but Apple has only this year in This year something requested by local executives has been requested for years, which are widely used by WeChat's popular mobile wallet platform, but the iPhone's camera app f Until the last year, there was no native support for scanning QR codes. This is probably because Apple has assigned its first exec with the specific responsibility of ensuring that Apple provides the right features for the Chinese market.

Others advise caution in solving the Apple problem in China.

As a brand with a seal of approval, you do not want to do anything that reduces that, "said Richard Kramer, an analyst tracking Apple for Arete Research. "Apple can not afford to replace the massive rewards they receive with local tastes."

It has recently been suggested that changes to WeChat could have serious implications for Apple.

iPhone Concept Image: Ben Geskin

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