Sunday , June 20 2021

IPhone price cuts Chinese users slam their hands – Apple iPhone

Apple's price-cutting strategy in China has really achieved results. According to the news report, on January 13, iPhone began to cut prices on the Tmall platform on January 29th
During the day, iPhone platform sales increased by 76%.
And as of January 11, Suning announced the iPhone
On the day of falling prices, Suning's easy-to-buy traffic and sales, as well as sales, erupted. Among them, the iPhone 8 and iPhone XR series are the most popular growth since January 30
On Suning, Suning's total sales of the Apple brand increased by 83%.


Apple Online Store (China)

Although Jingdong, Jieduodu and other platforms were not announced, according to the Jingdong Mobile Weekly Mobile Sales Report on January 14, the highest selling volume is the iPhone XR and the Jingdong platform is also in the week. Opening the iPhone to reduce prices, the iPhone iPhone XR prices are particularly obvious.

China's iPhone search has always existed but has been suppressed by its high selling price.

IPhone has cut prices in the Chinese market for the first time. Over the past few years, iPhone has been the most competitive smartphone brand on the Chinese smartphone market. However, this year, in the weak demand for products, Apple has to change this attitude.

In early 2019, Apple CEO Tim Cook published a letter to investors on the official site to reduce investors' expectations for global revenue. In his letter, he admitted that in the expected decline in global revenue this year, more than 100% of the decline is due to the Chinese market, given the absolute dominant position on China's China market, which can be seen as an iPhone. Sales in the Chinese market are not good.

Subsequently, in Apple's first quarter of 2019 (2019 Q1) earnings were recorded on January 29, Apple's revenue was $ 83.4 billion, down 5% less than $ 88.293 billion in the same period last year. Billions of dollars, down 0.5 percent from $ 20.65 billion in the same period last year, Apple's first earnings and profits fell after the birth of the iPhone during the Christmas shopping season (the final quarter of the year).

There is no doubt that the main factor in this decline is the iPhone. The financial report shows that the iPhone revenue is $ 51.982 billion, down 15% less than the same period last year from $ 61.104 billion, adding revenue from Mac, iPad, portable devices, home, accessories, and so on. Revenues also reached $ 10.875 billion, up 19% – yet these rates can not yet offset the impact of iPhone's revenue decline.

From a regional point of view, it can be said that Apple's performance in large China has led to serious revenue losses. Data shows that Apple's revenue in China was 13.369 billion dollars, down 27 percent from 17.756 billion dollars in the same period last year. This is in line with Tim Cook's message in the letter to investors.

Perhaps for boosting confidence, Apple first released some data that deserves attention. For example, to Q1 2019 the number of active installations on the iPhone is 900 million, an increase of 9% over last year, as well as the total installed base including iPhone, iPad, Mac, Apple TV, iPod, Apple Watch and more. More than 1.4 billion.

These data show one thing on a macro: Apple's environmental capabilities are undoubtedly powerful, and the basis of this ecological opportunity is the iPhone.

However, with regard to the iPhone, Apple is facing another bad news. In the data report released by IDC, a research data organization, Apple iPhone's delivery in the fourth quarter of 2018 returns second, but Huawei's third place is 43.9%, while Apple's supplies were is in a downward trend. From the year-round 2018, the second Apple and third Huawei had only 2.8 million in terms of supply, and Apple's decline of 3.2% annually throughout the year, while Huawei's inertia is still very strong. The growth rate was 33.6%.

It can be seen that Apple's second place in the global smartphone market is already under threat.

However, for Apple, what really deserves attention is not how to keep second in the world, but how to continue to acquire more users based on existing user coverage, while at the same time using the value of users in the services. Of course, even Tim Cook understands that the real opposition to iPhone sales is that his price is too high, resisting the pace of more consumers, which is more clearly demonstrated on the Chinese market – after the iPhone has lowered the price, Still there are many buyers.

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