[ad_1]
<div _ngcontent-c14 = "" innerhtml = "
Why Tim Cook and Apple do not understand the Chinese smartphone market? Key sales targets were not met, iPhone sales dropped and Apple has left a warning on its profits and disconcerting quarterly results.
Tim Cook launches Apple's annual product launch on Wednesday, September 12, 2018 at the company's headquarters in Cupertino, California (Karl Mondon / Digital First Media / The Mercury News via Getty Images)Getty
Although the smartphone market in China fell overall, Apple fell again and fell faster than the base. While the Chinese market fell by 9.7%, IPhone sales fell 19.9%.
Tim Cook has already exposed a number of factors that Apple sees as drivers of declining sales. including lower operator subsidies, which increase the iPhone's "over the counter" price, exchange rates and growing tensions between America and China. Cook explained this in his letter to investors, noting that he attributed the weak fourth quarter figures to the Chinese markets:
If you look at our results, our shortfall comes from more than 100% of the iPhone, mainly in Greater China. Looking at what is happening in China, it is clear that the economy started to slow down there for the second half. What I believe is the case is the trade tensions between the United States and China that put additional pressure on their economy. During the quarter, we saw lower traffic in our retail stores, lower traffic in our partner stores, and reports of a contraction in the smartphone industry.
I would say that the problem is closer to home. The Chinese market changed in the second half of 2018 and Tim Cook's Apple failed to detect these changes, or ignored them, convinced that iPhone sales would be foolproof. Three key elements have failed in China. All three should have been waited for and treated before a profit warning was needed.
Apple Design Director Jony Ive (left) and Apple CEO Tim Cook inspect the new iPhone XR (photo by Justin Sullivan / Getty Images)Getty
It is important to realize that Apple does not have the same lock with iOS applications and instant messaging via the iMessage platform in China and the Western territories. The real blockage belongs to WeChat – If your phone does not have WeChat, nobody buys your phone. And since the service is multi-platform, switching between Android and iOS is a lot less burdensome than many people think.
This means that Apple is in the same fight as everyone else. Devoid of its super iOS powers, Apple is fighting for a mix of raw specifications and hardware appeal. In addition, because Apple's technology and design are typically a year or two behind Chinese manufacturers, the iPhone XS family seems tired and identikit. It does not stand out.
Chinese market loves flagship productsbut does not really make suites or cheaper versions of a leading handset. In this sense, the iPhone X was a powerful device in 2017 – it was clearly the flagship product, there was no other device "X" and the iPhone 8 and 8 lower low end were easy to pbad.
This was not the case with the iPhone XS and XS Plus. Although these are the "last" devices, there is little difference between the hardware and the flagship products of the previous year. Just as the iPhone 5S and 6S have failed to enlighten the Chinese market, the iPhone XS have also failed.
Apple's plan was for the iPhone XR to take over at a lower price.But China's love for flagship products and luxury handsets meant that the XR would never be a major success. If Apple only trades on prestige, then who will buy the lower status handset?
Finally, the market for large, high-priced smartphones is not infinite – it comes at a time when it is saturated and the adoption curve will fall into a "one-for-one" replacement cycle. If new handsets do not offer significant advantages over previous handsets (and there is not much between the iPhone X and the iPhone XS), there will be little appetite for the upgrade. Get started with Apple's iPhone Battery Exchange Program that has given new life to millions of handsets Courtesy of a $ 29 battery and the audience available for the iPhone XS and XS Max has been reduced.
Apple CEO Tim Cook introduces new products, including new Macbook laptops, at a special event at the Brooklyn Academy of Music, Howard Gilman Opera House (Photo by Timothy A Clary / AFP ). Images)Getty
The Chinese smartphone market contracted in the fourth quarter of 2018; the product portfolio of the iPhone wallet was wrong; and Tim Cook's team did not understand how the territory required a different approach.
The way Apple corrects errors for the rest of 2019 and how it addresses these points in the 2019 handsets that will certainly be announced in September will be essential to reverse iPhone sales. Because without the iPhone bringing together new users, there is no user base to access the software and services that Apple will count on for its long-term growth.
Learn more about the tough choices Apple makes to save 2019 …
">
Why did not Tim Cook and Apple understand the Chinese smartphone market? Key sales targets were not met, iPhone sales dropped and Apple left a warning on earnings and disappointing quarterly results.
Tim Cook launches Apple's annual product launch on Wednesday, September 12, 2018 at the company's headquarters in Cupertino, California (Karl Mondon / Digital First Media / The Mercury News via Getty Images)Getty
Although the smartphone market in China fell overall, Apple fell again and fell faster than the base. While the Chinese market fell 9.7%, iPhone sales fell 19.9%.
Tim Cook has already exposed a number of factors that Apple sees as drivers of declining sales. including lower operator subsidies, which increase the iPhone's "over the counter" price, exchange rates and growing tensions between America and China. Cook explained this in his letter to investors, noting that he attributed the poor fourth quarter figures to Chinese markets:
If you look at our results, our shortfall comes from more than 100% of the iPhone, mainly in Greater China. Looking at what is happening in China, it is clear that the economy started to slow down there for the second half. What I believe is the case is the trade tensions between the United States and China that put additional pressure on their economy. During the quarter, we saw lower traffic in our retail stores, lower traffic in our partner stores, and reports of a contraction in the smartphone industry.
I would say that the problem is closer to home. The Chinese market changed in the second half of 2018 and Tim Cook's Apple failed to detect these changes, or ignored them, convinced that iPhone sales would be foolproof. Three key elements have failed in China. All three should have been waited for and treated before a profit warning was needed.
Apple Design Director Jony Ive (left) and Apple CEO Tim Cook inspect the new iPhone XR (photo by Justin Sullivan / Getty Images)Getty
It is important to realize that Apple does not have the same lock with iOS applications and instant messaging via the iMessage platform in China and the Western territories. The real blockage belongs to WeChat – if your phone does not have WeChat, nobody buys your phone. And since the service is multi-platform, switching between Android and iOS is a lot less burdensome than many people think.
This means that Apple is in the same fight as everyone else. Devoid of its super iOS powers, Apple is fighting for a mix of raw specifications and hardware appeal. In addition, because Apple's technology and design are typically a year or two behind Chinese manufacturers, the iPhone XS family seems tired and identikit. It does not stand out.
The Chinese market loves flagship products, but does not really produce suites or cheaper versions of a leading handset. In this sense, the iPhone X was a powerful device in 2017 – it was clearly the flagship product, there was no other device "X" and the iPhone 8 and 8 lower low end were easy to pbad.
This was not the case with the iPhone XS and XS Plus. Although these are the "last" devices, there is little difference between the hardware and the flagship products of the previous year. Just as the iPhone 5S and 6S have failed to enlighten the Chinese market, the iPhone XS have also failed.
Apple wanted the iPhone XR to take over at a lower price, but China's love for flagship products and luxury handsets was preventing the XR from being a resounding success. If Apple only trades on prestige, then who will buy the lower status handset?
Finally, the market for large, high-priced smartphones is not infinite – it comes at a time when it is saturated and the adoption curve will fall into a "one-for-one" replacement cycle. If the new handsets do not offer significant advantages over previous handsets (and that there is not much difference between the iPhone X and the iPhone). iPhone XS), the upgrade will be insufficient. Add the Apple Battery Exchange program to Apple which has given new life to millions of handsets with a $ 29 battery and the available audience for iPhone XS and XS Max has been reduced.
Apple CEO Tim Cook introduces new products, including new Macbook laptops, at a special event at the Brooklyn Academy of Music, Howard Gilman Opera House (Photo by Timothy A Clary / AFP ). Images)Getty
The Chinese smartphone market contracted in the fourth quarter of 2018; the product portfolio of the iPhone wallet was wrong; and Tim Cook's team did not understand how the territory required a different approach.
The way Apple corrects errors for the rest of 2019 and how it addresses these points in the 2019 handsets that will certainly be announced in September will be essential to reverse iPhone sales. Because without the iPhone bringing together new users, there is no user base to access the software and services that Apple will count on for its long-term growth.
Learn more about the tough choices Apple makes to save 2019 …
