Apple has been very successful with its devices worldwide but Apple’s iPhone is still struggling to make its place in Chinese Smartphone market. China has a population of approximately 1.357 Billion and more than half of this population has access to internet. 90% of the internet users access internet through mobile phones. Apple was optimistic to gain a large market share in China but a recent report research firm Canalys shows a different story. The report published by Canalys shows that the iPhone market in China has dropped by 18.2 percent in year 2016.
Chinese OEMs which include, Huawei, Gionee, Lenovo, Xiaomi, OnePlus, and Oppo have become successful in challenging the well performing Smartphone brands like Samsung and Apple. There is no doubt that Chinese Smartphone manufacturers have risen to such a point that Samsung and Apple will have to revise their strategies. The success of these Chinese OEMs is reflected in these figures:
Huawei has become the leading smartphone manufacturer with 76.2 million sales. Oppo which was just a small name has become the second largest manufacturer with 73.2 million sales. Vivo holds 63.2 million and Xiaomi hold the fourth place with 51.4 million pushing Apple to the fifth place. In an interview Apple CEO Tim Cook blamed that it was the currency value changes that resulted in revenue decline but also agreed that Chinese smartphone market is also challenging.
The real reason behind the decline of iPhones is the difference between the pricing strategies. Chinese smartphone manufacturers offer decent featured smarphones in less than half the price of Apple. This allows them to get larger market shares. If Apple wants to regain its markets in China it will have to revise its marketing strategy and offer competitive prices while adding more features to its iPhone.