Not surprising re: Apple slowdown:
1/ China smartphone market slowed down Oct-Dec, but this is small part of issue. New iPhone Xs series from design standpoint is commonplace vs competition & super expensive with base iPhone Xs 64GB starts at ~US$1250
apple.com/newsroom/2019/…
1/ China smartphone market slowed down Oct-Dec, but this is small part of issue. New iPhone Xs series from design standpoint is commonplace vs competition & super expensive with base iPhone Xs 64GB starts at ~US$1250
apple.com/newsroom/2019/…
2/ China smartphone market demand is expected to decline `9-11% but Apple iPhones is poised to decline 15-17% YoY in 2018, hence its market share will slip in 2018.
This highlights bigger problem for Apple as China is the second largest iPhone market for Apple.
This highlights bigger problem for Apple as China is the second largest iPhone market for Apple.
3/ Chinese brands are are out-competing/out-marketing Apple on design, mobile-first innovations & value prop which is being recognized by brand-conscious Chinese consumers.
The current iPhones are great for older gen iPhone users but not enuf to attract mature non-iPhone users.
The current iPhones are great for older gen iPhone users but not enuf to attract mature non-iPhone users.
4/ Not enough evidence if China-USA trade war has any effect on Apple iPhone sales and if Chinese consumers are at a point to give up on US products especially iPhones with "nationalism" creeping in.
But could be a factor if this trade-war, ban on Chinese companies escalate
But could be a factor if this trade-war, ban on Chinese companies escalate
6/ Apple's China struggle is a function of insane pricing which has backfired (misjudged it), stronger competition & maturing market
But this is not "äll is doomed" scenario for Apple. Apple still is in a great position & needs to re-calibrate its pricing vs value prop strategy
But this is not "äll is doomed" scenario for Apple. Apple still is in a great position & needs to re-calibrate its pricing vs value prop strategy
7/ What Apple has done here is to let competition also charge a premium but relatively lesser than Apple and book some extra profits.
The new iPhones pricing have slightly conditioned Chinese smartphone users on premium pricing but not convinced, sensitivity is shown.
The new iPhones pricing have slightly conditioned Chinese smartphone users on premium pricing but not convinced, sensitivity is shown.
8/ Chinese market looks like a zero-sum game but winner is one with prudently priced well balanced portfolio and unique value prop, enough room to grow with mid to premium portfolio & expand user base.
In 2018 in China, iPhones demand ~15% decline, Huawei +15% up in demand.
In 2018 in China, iPhones demand ~15% decline, Huawei +15% up in demand.
9/ Our China team via channel checks see the slowing iPhone demand a function of exorbitant price & uninspiring design change from iPhone X.
The initial launch bump running up to Alibaba 11.11 was healthy w/ early adopters but the large majority upgrades/switchers are passing.
The initial launch bump running up to Alibaba 11.11 was healthy w/ early adopters but the large majority upgrades/switchers are passing.
10/ Also dont forget the iPhone ban in China was already in effect in December, which Apple tried to re-appeal making it an iOS 11 issue which is not true from Qualcomm's end as the ban is applicable for all iPhones even iOS12.
So this could be also part of decline in future!!
So this could be also part of decline in future!!
11/ Steve Jobs circa 1995 - History Repeating Itself?
Apple should go after "Rational Profits & Market Share" and not "Greedy Outlandish Profits"
Apple should go after "Rational Profits & Market Share" and not "Greedy Outlandish Profits"
