The slowdown of Apple in China calls for a radical change in the iPhone – 05/02/2019 – Tec



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Apple has been operating for years baduming that it has the right to dictate the taste of the planet.

The few iPhone models announced by Apple every September are offered to buyers around the world in terms of "love it or leave it".

] The formula was rejected in the company's last quarter, when Apple's sales in China fell 27 percent to $ 13.17 billion.

The alert was triggered in January. that the company's revenue forecasts would not be achieved.

Some badysts and former managers suggest a radical change: put an end to the single product approach in all markets and push aggressively for the differentiation of handsets and applications offered. "They are not adapting fast enough," said Carl Smit, former head of Apple's retail business in Asia and now a strategic sales consultant.

"These applications and systems are the solution: people communicate in China, and if you do not offer perfect integration, it gives Chinese manufacturers an advantage."

Tuesday (29), a spokesman for Apple declined to comment. Apple said poor economic conditions and lower demand for the iPhone had hurt its business in China.

Tim Cook, general manager of the company, said the company was in (19659002) Apple also lowered the price of its iPhone XR

Creating more suitable iPhone models for the Chinese market could help Apple to face the growing competition from local companies such as Huawei and Xiaomi.

This would also allow the command of the local company to be more agile in the face of unforeseen events, such as the US-China trade dispute that caused China's rejection. to American brands

The company's operations in China are among Cook's most important contributions to Apple. Their turnover has more than doubled to more than 50 billion dollars a year since he became general manager in 2011.

The Chinese market is the second largest market for Apple, behind only from the American. But Huawei, Xiaomi and others have challenged Apple by launching dozens of products every year, aimed at local consumers and respecting their changing tastes.

Apple's sales in China stumbled for the first time in 2016.

Although the high-priced iPhone X has allowed the region to regain sales growth over the the fiscal year ending in September, the total revenue in China was 12% lower than the peak of fiscal 2015.

A Chinese team of Apple pushes the leaders from headquarters in Cupertino, Calif., to keep up, said former employees. In 2012 and 2013, employees of the Chinese division of Apple have suggested the launch of two-chip phones.

"We said that's what consumers wanted," said Veronica Wu, who previously worked on sales to Apple in China. become a capital executive for Hine Capital companies. Apple product managers have been "reluctant".

Two-chip phones have become so popular that about 93 percent of smartphones sold in China offer this feature, according to the Cbadys market research group

. ] But Apple just released two-chip iPhones last September. China-specific iPhones would create new costs and complexities that threaten profit margins.

Other companies have long been adapting their models to the vast Chinese market, from green tea Oreo biscuits sold by Mondelez International to Baojun brand cars, a General Motors joint venture.

Letter from Cook To investors, on January 2, he did not explain in detail how Apple was planning to address the slowdown in China, but said that the company's business in the country "have a bright future ".

He pointed out that the number of active Apple handsets in China grew last year and the services sector products increased in the fourth quarter of 2018 in the Chinese region, which includes Hong Kong and Taiwan.

The company is trying to be faster. In 2017, she appointed Isabel Ge Mahe as supervisor of the Chinese region. It is up to him to monitor the market and ensure that Apple has the appropriate resources for Chinese users.

The company also recently appointed a director for its Internet service group in China, revealed a team of ten people. on LinkedIn, whose mission is to create more software tailored to China.

Translated from the English by Paulo Migliacci

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