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Apple Inc. Is Losing Out To Oppo And Huawei In The Chinese Smartphone Market.

Apple Inc. no longer dominates the Chinese smartphone market as the American multinational technology company is battling with local brands – Huawei and Oppo – to retain its grip on the domestic market.

In September 2015, the Cupertino-based company published an annual revenue of $233 billion for the fiscal year.

Apple’s revenue generation is calculated as approximately 1.25% of the total United States GDP.

Although the American tech giants enjoy a high level of brand loyalty from customers around the world, Huawei and Oppo have tightened their business strategies within the Chinese market.

According to a Best Global Brands report from Interbrand, an annually published survey, Apple Inc. has been crowned the most valuable brand in the world for a period of four years in a row.

In 2016, Steve Job’s company was valued at $178.1 billion notwithstanding huge criticisms it faced for labor practices with contractors, the origins of source materials as well as its environmental and business practices.

The year 2016 was coincidentally also a good year for China which is rated as the largest smartphone market in the world. Significant changes were noticed in favor of local Chinese brands.

Samsung Electronics and Apple Inc. lost their places as the leading smartphone companies in China thanks to Huawei, Oppo and Vivo which catapulted to the top three slots in terms of market share.

The three local brands recorded an unbelievable 48% of all shipments from the country in 2016.

Reports confirm the trio rely mostly on new lines of flexible and curved-screen devices as their chart-topping market strategy.

 

Shipments from Apple recorded a decline in the last quarter of 2016 after its latest iPhone 7 failed to impress buyers. The nose-dive was highlighted by quality products from local competitors.

Xiaomi, another powerful competitor in the Chinese market, entered the picture in 2011 and takes credit for this transformation which has destroyed business prospects for Samsung and Apple in China.

A 2016 market share survey ranked Xiaomi as fifth in the ladder.

Business reports say iPhone shipments recorded a disappointing 23.2 percent shipments in 2016, reducing its market share to only 9.6 percent. This is the company’s lowest share in the past two years.

Samsung regrettably disappeared from the top five brands in 2016.

“Even though the new black colored iPhones caught the attention of consumers, overall, the new launches did not create as much of a frenzy compared to the past,” the IDC said in a statement.

Apple has looked away from China and is now working out strategies to conquer India with better pricing.

As the San Jose company prepares to launch a new iPhone later this year to mark its tenth anniversary of the device, there are speculations that Apple may regain its appeal.

IDC added: “Apple’s ten-year anniversary iPhone will also likely attract some of the high-end Android users in China to convert to an iPhone.”

Most Chinese brands are also making efforts to explore foreign markets.

Huawei is targeting $33 billion in 2017 revenue for its consumer electronics division abroad.

Vivo is already competing for a place as one the top brands in India.

“We expect these vendors to increase their shipments in the international market, with India as a key target for these top Chinese vendors,” IDC added.

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