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Reportedly Apple is losing market share in China
Posted on: January 3, 2019 at 15:10:18 CT
Knucklehead MU
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First, the total market - the number of cell phone sales in China is declining. This reflects two factors (1) slower economic growth; and (2) market saturation. Market saturation is a well known phenomena in smart phone sales. As a larger and larger percentage of the population already has a cell phone - you move from expanding total ownership to replacement sales.
Second, Apple's share of the total market in China. Apple has reportedly been losing market share because its smart phones are significantly more expensive than those offered by China's domestic producers.
A third rumored factor is the recent campaign launched by the US to damage China's major domestic producer Huawi. There have been reports that the US met with its "five eyes" intelligence agency allies over last summer and formulated a plan slow down Huawi's exports. One after another the five eyes countries have rolled out proposals to ban the sale of Huawi's phones for "national security reasons". Then you had the arrest of the company's CFO in Canada. Combined with other obvious US attempts to put pressure on China during trade negotiations, this has the look of a coordinated smear campaign. Regardless of how real the campaign is or isn't, that theory has some followers in China. That has supposedly caused some Chinese buyers to basically rally around there domestic suppliers.
A fourth and final factor that probably isn't quite yet reflected in results, is the Chinese court decision on patent violation in favor of Qualcomm.
Sorry for the spelling errors. Don't know much about anything. So pay no attention to my speculation.
Edited by Knucklehead at 15:11:57 on 01/03/19
Second, Apple's share of the total market in China. Apple has reportedly been losing market share because its smart phones are significantly more expensive than those offered by China's domestic producers.
A third rumored factor is the recent campaign launched by the US to damage China's major domestic producer Huawi. There have been reports that the US met with its "five eyes" intelligence agency allies over last summer and formulated a plan slow down Huawi's exports. One after another the five eyes countries have rolled out proposals to ban the sale of Huawi's phones for "national security reasons". Then you had the arrest of the company's CFO in Canada. Combined with other obvious US attempts to put pressure on China during trade negotiations, this has the look of a coordinated smear campaign. Regardless of how real the campaign is or isn't, that theory has some followers in China. That has supposedly caused some Chinese buyers to basically rally around there domestic suppliers.
A fourth and final factor that probably isn't quite yet reflected in results, is the Chinese court decision on patent violation in favor of Qualcomm.
Sorry for the spelling errors. Don't know much about anything. So pay no attention to my speculation.
Edited by Knucklehead at 15:11:57 on 01/03/19
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Reportedly Apple is losing market share in China - Knucklehead MU - 1/3 15:10:18