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When Apple announced Wednesday (2) that its revenue in the fourth quarter of 2018 would be up 10% over expectations, the company mainly attributed the problem to the slowdown in the Chinese economy. "Although we anticipated significant challenges in emerging markets, we did not anticipate the magnitude of the economic slowdown, especially in the Chinese region," said Tim Cook, chief executive of the society.
Analysts have wondered if China's guilt could really be blamed, but Apple's results certainly depend on the world's largest smartphone market. Understand four questions and answers.
China is the largest smartphone market in the world and accounts for about one-third of the world's sold units. Apple has enjoyed a luxury brand position, a product to which consumers aspire, as well as the rise of the country's middle clbad and other markets of the Chinese region , such as Taiwan and Hong Kong, which constitute the third source of supply
But their devices cost up to 12,700 yuan ($ 1,856), more than double the price of high-end models of their competitors.
The company has also struggled to satisfy the authorities in such a large market. In 2017, it transferred all of its user data to China to a US $ 1 billion data center in Guizhou, anticipating that the authorities would adopt stricter rules for local data storage.
has been criticized for removing 674 VPN applications from its Chinese application store, which protects users from censorship and government oversight.
But Apple's growth in the country has been hesitant. In August 2017, the company had recorded a decline in its business in China for 18 consecutive months, which has led some badysts to predict that the iPhone maker would fail in this country.
On Wednesday, he announced that his global business in the fourth quarter of 2018 would have reached $ 84 billion, or about 5%. less than originally planned for the period.
The Chinese economy slows down due to a decline in domestic demand and the effects of fierce trade war with the United States
The country's private industrial sector has shown Last negative signs Wednesday when it was announced that Caixin's industrial purchasing index had fallen for the first time in 19 months in December.
"Consumer confidence dropped in October, Shaun Rein, executive director of the China Market Research Group, which conducts research on the Chinese market in Shanghai, said Shaun Rein.
Declining consumer confidence has China's mobile phone market After eight years of growth, smartphone sales volume dropped for the first time in 2017, according to data from the IDC research group.
Sales continued to fall last year, and some badysts say that this slowdown
"The whole market slows down, and Apple even more," said Kiranjeet Kaur, senior director of research at IDC for the Asia-Pacific region, highlighting the increased competition from local brands such as Huawei and Xiaomi
Huawei overtook the iPhone maker for the first time last year and Huawei overtook the iPhone maker for the first time.
Like Xiaomi, the Shenzhen-based group sells phones much cheaper than those of Apple – Huawei models cost up to 50% cheaper than products
The FT Confidential search service also found that Chinese consumers are less willing to pay to switch from new handsets to new models of the iPhone, but that they are willing to buy older models and less Dear. In a survey conducted by FT Confidential, only 1.1% of respondents said they would be willing to spend 10,000 yuan or more on a new smartphone, which would hinder one of the crucial sources of revenue from the company.
But Analysts In 1965, Huawei proposed, for example, phones accepting two chips more than ten years ago, while Apple has added this feature only to its new price .
The latest models of the Chinese company also offer several cameras, fingerprint identification and even wireless battery recharges, in which a handset can be used to charge others. The demands of Chinese consumers are increasing, they perceive more and more the quality-price relationship, "said Guan Yiting, a smartphone badyst with the market research group Cbadys.
" Huawei has published new models with a long battery life and newer chipsets priced at around 4,000 yuan ($ 580), "she added." Huawei's smartphone sales grew by 24% in value in the third quarter of 2018, down from only 8% in the third quarter of 2018, "he said." The iPhone is no longer as attractive – Chinese consumers have more of alternatives. "
Apple, according to IDC.
The trade war between China and the United States has hurt the Chinese economy in general, but some badysts believe that it has directly affected Apple's sales.
A wave of patriotism appeared at the beginning of the trade dispute – and especially since Huawei's Vice President of Finance, Meng Wanzhou, was arrested in December because of an American extradition request – a pushed some consumers to opt for local brands
A technology company based in Zhejiang has explicitly banned its staff from buying iPhones and offered subsidies for the purchase of Huawei handsets. Some restaurants also offer discounts to guests who own a Huawei cell phone.
Although badysts claim that the effect is minimal, Apple's receipt in China remains negative.
"There is a negative sentiment against the iPhone on the market," said Kaur.
Translation by PAULO MIGLIACCI
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