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| Apple will not overtake Huawei in the short term |
Data from the Chinese Academy of Information and Communications Technology says that Apple's iPhone sales in China increased significantly last month, but Huawei, the technology giant, will not give up first place soon. IPhone sales increased by 18% in a month in December 2019 compared to the same month in 2018.
Despite these gains, Apple has lost its strength compared to Chinese competitors over the years, and analysts believe this trend should not change. The main reason for this is that Apple is selling expensive phones to wealthy customers, and from a small part of the market, Huawei and Xiaomi offer more phones in different price sectors.
Last year, Apple managed to increase sales in China in the short term by launching three iPhone 11 models in the Chinese price market, said Luis Liu, an analyst at Canalis. Domination. at the long term.
Huawei sells many cheap cell phones:
In the large number of smartphones sold in China in the third quarter of 2019, Huawei ranked first with a market share of about 42%, and Apple's share by 5% to fifth place 8%. According to the latest data from IDC and Canalys, two independent companies use slightly different methods to measure smartphone shipments.
According to IDC data, cheap smartphones account for most of Apple's Chinese competition. Last year, about 90% of Huawei phones sold in China cost less than $ 600.
However, according to IDC analyst Kiranjeet Kaur, Huawei has in particular been able to persuade consumers who want to pay between $ 600 and $ 800 for the flagship phones. Apple abandoned this market when iPhone pricing started in its price range. Top.
Sales in China are important to Huawei:
The company faces domestic competitors with cheap phones and actively promotes high-end flagships that can keep up with Apple in the domestic market as overseas sales are under pressure due to the blacklist of the United States.
Washington incorporated Huawei in May last year, and bars U.S. companies from selling the company's core technology and software. This ban means that Huawei smartphones can no longer access Google services (such as the Google Play Store), Gmail, and YouTube. And google maps.
Although this is not important in China since the phones sold there do not have Google services available anyway, the lack of Google services elsewhere has affected the overseas sales of Huawei smartphones.
"Most of the sales abroad come from high-end phones, and you have to pay more for cheap devices in China to increase sales," said analyst Kiranjeet Kaur.
Apple's strategy revolves around high-end phones:
For Apple, these cheap phones don't matter, because California has been slowly increasing the iPhone's average price since 2007, which is a huge leap compared to the regular price of the iPhone X of $ 999 in 2018. However, customers are willing to buy IPhone is expensive.
According to IDC data, Apple's policy in China appears to be operating due to its reputation as a premium brand. The company sells cellphones much less than its rivals Vivo, Xiaomi and Oppo, but still has a larger market share in China. Share it.
According to IDC data, Huawei remains in the first place due to the market value of the Chinese smart phone market and got 43% of the market share, while Apple comes in second with only 21%, which means that Huawei must be run in the domestic market. Of cell phones sold has more than doubled to generate Apple sales in the country.
Apple hasn't applied in at least one area, which is important for long-term success in China and elsewhere. It is a high-speed fifth-generation network. Huawei has launched several 5G models in China, but iPhones that support 5G networks will not appear before. According to Canalys, this month it created a huge gap for Huawei in September to attract more consumers.
It also launched OPPO, Vivo and Xiaomi smartphone companies in addition to other Chinese smart phone companies 5. Samsung, the world's largest smartphone maker, announced earlier this month that it now represents the global smart phone market. More than half. For 5G network, though, it does not actually have a market share in China.