mijn eerste gedacht, zal de marketen doen dalen
Apple’s China Problem Is That Local Phones are Good -- and Cheap
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Alex Webb
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July 24, 2016 — 10:00 PM CEST
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Maker of iPhone has lost market share to Huawei and Oppo
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Apple third-quarter sales on July 26 seen showing decline
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For Beijing resident Nie Miao, spending 5,000 yuan ($749) on a new iPhone 6S from Apple Inc. “just isn’t an option.”
That’s because the lion’s share of his 7,000 yuan monthly pay goes toward the mortgage on the downtown apartment he bought last year. And he’s perfectly happy with the 2,000 yuan handset he got from Huawei Technologies Co.
The 29-year-old embodies the challenges in China for Apple, which has lost ground to local competitors. It’s been almost two years since the Cupertino, California-based company revamped the iPhone for the sixth generation. In the meantime, rivals like Huawei and Xiaomi Corp. have developed their own cheaper products with similar specifications, while the relative success of the iPhone 6 has made it harder for Apple to sustain its growth rates.
After forecasting a second consecutive quarterly sales tumble in April, Chief Executive Officer Tim Cook will reveal the extent of the decline when he reports earnings July 26. China generates about a quarter of Apple’s revenue, and deterioration there accounted for much of the sales drop.
Huawei supplied one in four new phones in the three months through May, leapfrogging Apple to become the biggest phonemaker by market share in urban China, according to a Kantar Group study published this month. Guangdong Oppo Electronics Co.’s share meanwhile jumped fourfold to 8 percent of the total.
“It’s a function of cheaper phones becoming good enough,” said Abhey Lamba, a San Francisco-based analyst at Mizuho Securities who recommends buying Apple shares. “Apple has done well at the upper end, but there’s not much more growth at the upper end of the market.”