ã€Global Economics Report】 “Nihon Keizai Shimbun†reported on August 3 that the US’s April-June financial report showed that despite the existence of the iPhone’s new model, consumers have reduced their purchases before the listing, but Apple has also achieved two consecutive quarters. Profit growth. In addition to the recovery of tablets, service revenues such as application sales have reached a record high. However, sales in China have fallen by 10% and have decreased for six consecutive quarters. For Apple, China is becoming a weakness.
At the press conference after the publication of the earnings report, Apple CEO Tim Cook said, "This is a courageous financial report that exceeds expectations." The tablet PC iPad, which had continued to slump, grew by 15% to 11.22 million units, and the main product iPhone also grew by 2% to 41.02 million units.
However, at the press conference, the reporter’s questions focused on the Chinese business. Cook said that "a severe period has passed" and put forward optimistic views. However, it is difficult to deny that Apple lacks a strong momentum in the Chinese market.
In China, the trend for users to switch mobile phones from other brands to iPhones has not increased as in other developed countries. According to a person in charge of a sales shop of a Chinese mobile phone manufacturer, "Chinese young people are tired of the recent Apple products." Apple's sales in emerging market countries other than China increased by 18%, which is in stark contrast to China.
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According to the British investigation company Canalys statistics, the top four Chinese handset market share from April to June were monopolized by domestic brands. As Apple’s biggest competitor in China, Huawei’s smartphone technology, which ranked first, increased by 20.6% year-on-year to reach 73.01 million smartphones in the first half of 2017. Huawei has played a role in brand strategy that highlights the sense of luxury with a price of about 4-6 thousand yuan by using models equipped with brand-name "Leica" cameras.
Apple will speed up its business. Isabel Ge Mahe, the first Chinese business executive and vice president who will be stationed in Shanghai from summer 2017, is the person who has been directing the introduction of local autonomous services in China.
Apple announced in July that it has set up its own data center in China. Even under the risk of protecting the user's privacy from being undermined by Apple, it is still building the foundation for expanding services in China.
Analysts at Guggenheim Securities pointed out that for Apple, about 40% of users have not replaced the new machine for more than 2 years. The iPhone's new model will have huge sales even if it is updated. However, in the long run, the downturn in the Chinese market, which accounts for nearly 20% of overall sales, has become a huge risk behind Apple’s strong performance.
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