news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

As one of the most famous brands in the world, Apple has been developing rapidly in recent years. Recently, Apple’s financial report was released. Surprisingly, Greater China became the only region with a decline in Apple’s report card. What’s going on in the Chinese market? Why is Apple not selling well in China?

1. Apple's third quarter report shows that Greater China is the only region with a decline

According to the China Business News, Apple announced its third-quarter 2024 results ending June 29. Revenue for the quarter was US$85.8 billion, a year-on-year increase of 5%. Analysts expected US$84.46 billion, and net profit was US$21.448 billion, an increase of 8% from US$19.881 billion in the same period last year.

Among them, Apple's market performance in Greater China in the third fiscal quarter was disappointing, with revenue of US$14.728 billion, down 6.5% from US$15.758 billion in the same period last year. Although market demand has improved after frequent price cuts in China, Apple's domestic shipments still fell year-on-year in the second quarter of 2024. IDC data shows that in the second quarter of 2024, Apple ranked sixth in China with a market share of 13.6%.

Outside of Greater China, Apple's largest market, the Americas, had revenue of $37.68 billion in the third quarter, up 6.5% year-on-year; its second largest market, Europe, had revenue of $21.88 billion, up 8.3% year-on-year; and its revenue in Japan was $5.1 billion, up 5.7% year-on-year.

Compared with Apple's decline in Greater China, domestic mobile phones are on the rise. The latest data released by IDC shows that in the second quarter of 2024, domestic mobile phone brands took the top five seats in the Chinese market for the first time. Among them, vivo ranked first in China's smartphone market with a market share of 18.5%; Huawei ranked second with a market share of 18.1%, a year-on-year increase of more than 50%; OPPO ranked third with a market share of 15.7%; Honor ranked fourth with a market share of 14.5%; Xiaomi's shipments increased by 16.5% year-on-year, ranking fifth with a market share of 14%.

2. What’s happening in the Chinese market?

In Apple's latest third-quarter report, Greater China became the only region with a decline in sales, a phenomenon that has attracted widespread attention in the industry. China, as one of the world's largest smartphone markets, not only affects Apple's global layout, but also reflects the profound changes in the Chinese mobile phone market and even the global technology industry. How should we analyze this?

First, the decline in sales in Greater China is actually foreseeable to a certain extent. The Chinese mobile phone market has long been one of the most competitive battlefields in the world, known as the "red ocean" market. In recent years, Chinese local mobile phone brands such as Huawei, Xiaomi, OPPO, vivo, etc. have rapidly risen and occupied a dominant position in the market by virtue of technological innovation, cost-effective advantages and a deep understanding of the local market. Although Apple has a certain market share in the high-end market, the stability of its market share has been challenged by the continuous innovation of Chinese brands in product design and marketing strategies.

Secondly, since Huawei released the Mate 60 Pro last year, the performance of domestic mobile phones in the high-end market has become increasingly impressive. Products such as Huawei's Mate series, Xiaomi's MIX series, and OPPO's Find series are not only comparable to Apple's iPhone series in hardware configuration, but have even surpassed it in some innovative technologies. The emergence of these high-end domestic mobile phones not only meets consumers' demand for high-performance and high-value mobile phones, but also has a significant impact on Apple's base in the high-end market. Consumers have begun to realize that domestic mobile phones can even provide a better user experience in some aspects, which has undoubtedly intensified Apple's competitive pressure in the Chinese market.

Third, currently, reverse consumption is prevalent, and consumers pay more attention to the cost-effectiveness of products. Under this consumption trend, Apple's disadvantages are becoming more and more obvious. Apple phones have always been known for their high-end brand image and high prices. However, for most consumers, high prices do not necessarily mean high cost-effectiveness. With the continuous improvement of domestic mobile phones in terms of performance and quality, domestic mobile phones with relatively affordable prices have become the first choice of more consumers.

Take the latest Apple mobile phone as an example, its price is usually thousands of yuan or even more than 10,000 yuan, while the price of domestic mobile phones with the same configuration is often much lower. For ordinary consumers, they are more willing to choose domestic mobile phones with reasonable prices and excellent performance, rather than paying too high a price for brand premium.

Under the influence of the reverse consumption trend, consumers are more rational and pragmatic. They no longer blindly pursue brands and high-priced products, but pay more attention to the actual value and user experience of products. If Apple cannot adjust its strategy in time, reduce prices or improve the cost-effectiveness of its products, it will be difficult for it to gain a foothold in the fiercely competitive Chinese market.

Fourth, in the long run, the rise of domestic mobile phone brands is unstoppable. With the continuous improvement of technological innovation capabilities and the continuous improvement of the industrial chain, domestic mobile phone brands are gradually narrowing the gap with international first-tier brands. Especially in the application of cutting-edge technologies such as 5G and artificial intelligence, domestic manufacturers have demonstrated strong R&D capabilities and market sensitivity. For Apple, if it wants to continue to maintain its competitiveness in the Chinese market, it must face up to this reality and take positive measures to respond.

Therefore, the decline in sales in Greater China in Apple's third quarter report not only reflects the fierce competition in the Chinese mobile phone market and the strong rise of domestic mobile phone brands, but also reveals the changes in consumer choices and consumption trends. Apple needs to deeply understand the changes in this market environment and take effective measures to meet challenges and maintain its leading position in the global smartphone market. At the same time, this phenomenon also reminds global technology companies that although the Chinese market is full of opportunities, the competition is also extremely fierce. Only by constantly innovating and adapting to the market can they remain invincible in the Chinese and even global markets.