Chinese smartphone firms have improved their game in China. According to multiple retailers, customers are hesitant to upgrade.
The domestics brands such as Huawei, Xiaomi are making significant amounts of progress. They are providing top-tier hardware and exciting, innovative features in a price cap of about $500 – $800. As a result, the sales of the premier global icon; iPhone is experiencing a severe hit.
“Of those people who are upgrading, there are many switching from Apple to Chinese brands but very few switching from Chinese brands to Apple,” said Jiang Ning, who manages a Xiaomi store in the northern province of Shandong.
Huawei Technologies Co Ltd, Xiaomi Corp, Oppo, and Vivo have taken the markets by the storm. The companies who once sought of buying shares in the already famous tech giants are now considered one themselves.
“People are more attached to their phone than ever and have higher expectations for the function and experience it offers. The response has been constant upgrading of hardware specs,” Alen Wu, global Vice President at Oppo.
Lately, there has been a significant shift of customers switching from Apple to Huawei, Xiaomi. CEO of Huishoubao, He Fan, which buys and resells used phones, said the love for enhanced camera quality had been the real reason.
“Huawei’s cameras have become noticeably better than Apple’s in that they suit the tastes of Chinese consumers more,” he said.
For instance, while the majority of the companies were banking on the advanced dual-camera technology, Huawei’s P20 Pro surprised everyone with a triple rear-facing camera.
It is one of the several new devices that helped Huawei’s share of the $500-$800 incremental segments in China rise from 8.8 percent to a whopping 26.6 percent.
Apple’s dominance takes a severe hit
On the contrary, Apple’s shares fluctuated from a healthy 81.2 percent to 54.6 percent. In addition to this, the release of the iPhone X series hurt them a little more due to the massive price increase.
A 64GB iPhone 8 sold at Suning.com Co Ltd now costs 3,899 yuan (£443), roughly 25 percent less than it did in December. That’s also lower than its $599 price tag in the United States, where iPhones typically cost less to buy than in China.
In earnings too, it seems to be a tale of divergent fortunes. Apple’s October-December revenue from the Greater China region fell by about a quarter from a year earlier. Greater China currently accounts for 15.6 percent of its overall revenue.
Rising threats to Apple’s Sales
As of now, Huawei is considered to be the primary competitor of Apple in China. But, it’s not the only company Apple is worried about. Emerging brands such as Oppo and Vivo are churning their stomachs too.
The distinctive features provided by these companies are unavailable on the iPhone. To name a few, the under-the-glass fingerprint sensors and “notch-less” displays have hurt Apple.
Another strong rising competitor, is Xiaomi. In January, the company announced to go upmarket. The company claims to provide even more enhanced features at affordable prices.
As a whole, the future of Apple’s revenue generation is exceptionally dark in China. To take over their lost dominance, they need to beat their competitors with the supremacy they were once famous for.