Apple is suffering in China

Jamie McKane

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Apple is suffering in China

The trade war is taking its toll on Apple, a new survey of Chinese consumer attitudes shows.

The company tumbled to No. 24 in an annual report on China’s top brands, falling from No. 11 a year ago. In 2017, before the trade war started, Apple was fifth in this ranking.

[Bloomberg]
 

SauRoNZA

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I always love how the media throws around terms like "suffering" so willy nilly.

They certainly aren't doing that.
 

SauRoNZA

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What are they doing?
My point is that when a company makes slightly less profit this month or sells less units, but is still at the top of the game and showing massive profits how can they be "suffering" exactly?

Suffering would be if it's all gone to **** and they aren't seeing any profit at all and are verging on bankruptcy.
 

Dolby

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My point is that when a company makes slightly less profit this month or sells less units, but is still at the top of the game and showing massive profits how can they be "suffering" exactly?
I'm not really sure if it's really 'slightly less profit' for a month, though ?

Just the quotes below are a bit worrying ... don't you think ? Even Apple are saying it's a key market and they're declining quarter on quarter.

Apple's iPhone sales in China were down 30 percent during the first quarter of 2019, according to new shipment estimates shared today by Canalys.

Apple shipped an estimated 6.5 million iPhones during the quarter, marking its worst decline in two years

Huawei saw impressive growth during the quarter, with smartphone sales up 41 percent. Other smartphone vendors in China also saw drops in smartphone sales, though not as dramatic as Apple's decline

Apple held just 7.4 percent market share in China during Q1 2019, down from 10.2 percent in the year-ago quarter

Sales of the iPhone are falling off in Europe and Thailand, the second-biggest smartphone market in Southeast Asia, where shipments fell by more than 50 percent

Shares have fluctuated dramatically over the past six months amid worries about slowing iPhone demand in China

Chinese sales account for 18% of Apple’s sales, the analysts wrote. They revised their forecast for iPhones sold in China for the 2020 financial year to 16.8m, down from a previous estimate of 33.6m.
 

SauRoNZA

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Forget the percentage and how significant that looks.

Focus on the fact that it was still 6.5 million phones.

There isn’t any suffering to be had there.
 

Dolby

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but is still at the top of the game and showing massive profits how can they be "suffering" exactly?
When you say on the top of their game, you don't mean technically ?
Everything about the last few generations of iPhone have been rather average ?

If you mean marketing, you're spot on - they have an exceptional team that have really convinced people. I chatted to one guy that told me his A11 is still faster than anything Android has ever made ... and I don't have one, because I can't afford one. He's the poster child for Apple :)
 

Dolby

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Focus on the fact that it was still 6.5 million phones.
I wouldn't say that is how one should look at declining sales in a key market :/

I'd rather focus on what has been lost - figure out why - and rectify that
 

SauRoNZA

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You know what I’m not even going to respond to the obvious bait.

They’ve been on top of their game in every aspect of their existence.

That existence doesn’t suit you, and that’s fine, but just because you don’t like it or understand it doesn’t make anything about it average.
 

SauRoNZA

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I wouldn't say that is how one should look at declining sales in a key market :/

I'd rather focus on what has been lost - figure out why - and rectify that
We know exactly why.

Very little of it has anything to do with Apple.
 

Dolby

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We know exactly why.

Very little of it has anything to do with Apple.
True - he's hurting everyone ...

But my point remains is that I don't feel it's a 'slight drop' for a month or two *shrug*
 

cerebus

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True - he's hurting everyone ...

But my point remains is that I don't feel it's a 'slight drop' for a month or two *shrug*
This particular issue is very much to do with Trump:


The company tumbled to No. 24 in an annual report on China’s top brands, falling from No. 11 a year ago. In 2017, before the trade war started, Apple was fifth in this ranking. Meanwhile, Apple’s biggest local rival, Huawei Technologies Co., climbed two spots and came in second, behind only Chinese payment service Alipay.

The shuffle in the rankings is a sign of the growing challenge American brands face in the second year of Donald Trump’s tariff showdown with his Chinese counterpart, Xi Jinping. The survey findings show Chinese consumers growing cooler towards some American brands, especially after smartphone giant Huawei saw its Chief Financial Officer, Meng Wanzhou, arrested in Canada last year at the behest of the U.S. government.

“There’s a lot of nationalistic buying in that category, because Chinese consumers interpreted what happened to Huawei as an attack,” he said.

Patriotism helped fuel the rise of other Chinese brands, too. Sportswear maker Li Ning Co. cracked the top 40 for the first time, ranked No. 34, just two spots behind market leader Nike Inc.
 
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