The latest smartphone market share report by Gartner, a market-research firm, makes clear that apple’s iPhone business has stalled, according to the website. In the first quarter of this year, the iPhone sold about 51m units, according to Gartner, which was flat in the same period last year, while global smartphone sales grew by 9%.Wholesale iPhone 8 Case already for some big distributors.
Don’t let a person feel surprise, apple global smartphone market share slipped from 1.1% to 13.7% than the same period last year, China’s smartphone big three — huawei, Oppo and Vivo, market share has increased significantly.Wholesale phone case for iPhone 8 is the chance for business.
The Chinese market is apple’s problem
Madison said one of the main reasons apple’s handset sales have stalled is a falling sales in China. China is the world’s largest smartphone market, accounting for one-third of global handset sales. Apple’s iPhone sales in greater China fell for five consecutive quarters as local manufacturers swept the market. The second quarter of this fiscal year, apple’s greater China revenue of $10.7 billion (RMB 72.7 billion), equivalent to about 20% of total revenue, but fell 14% year-on-year, the greater China region in apple’s total revenue accounted for about 25%.
More importantly, Chinese handset makers are involved in emerging markets and developed markets such as Europe, with cheap products. Will the next iPhone help apple recover?
Apple seems to have made a smart strategy for the new iPhone
Rumors that apple will be released this year three models of the iPhone, the two models is the current generation iPhone upgrade version, called the 7 s and 7 s Plus, the third type is more impressive ten anniversary edition iPhone 8. Ubs estimates the iPhone 8 starts at $870, up from $1,070.
Separately, Steven Milunovich, an analyst at ubs, predicted that the premium models could account for up to 45 per cent of apple’s iPhone sales. In an investment report, Morgan Stanley predicted that the iPhone, which accounts for 50 per cent of sales, would be equipped with OLED screens to support Mr Milunovich’s prediction. If all the iPhone 8 is sold, apple’s revenue will grow significantly.
Given the technology that is being integrated in the rumor, it is not surprising that the high price model iPhone is popular. According to Gartner, the average selling price of smartphones is rising as customers are willing to pay more for better features.
The iPhone upgrade cycle is another catalyst that investors shouldn’t miss. Bernstein, a market-research firm, expects 203m iPhone users to upgrade their phones next year, an opportunity for 7s and 7s Plus.
Due to may cause have been used to $649 (RMB 4411) will start at existing customer dissatisfaction, priced at $1000 (RMB 6797) iPhone sales might not bring to apple’s satisfaction. Therefore, apple launched two relatively cheap models, help it with samsung Galaxy S8 competition and promote the sales, is the appropriate strategy, price higher flagship model can bring more profit.
China will block the success of the iPhone 8
Madison said apple’s existing user base and developed market would no doubt be a catalyst for a new generation of iphones, but it remains to be seen if it can make a comeback in the Chinese market. Even if apple launched a highly innovative equipment by the Chinese customers like, it also may not be able to succeed, because huawei, Oppo and Vivo is powerful smartphone manufacturers in China.
In addition, last year, there were close to 50,000 retail stores in huawei, and Oppo has 200,000 retail outlets across the country. Both companies offer incentives to retailers and distributors to boost sales.
Apple has only 40 stores in China, with some estimates that 40 per cent of smartphones in China are sold through physical stores. In addition to high prices, apple’s weakness in China’s smartphone market could hamper the next generation of iPhone sales. So even with an advanced device, apple may not be able to make much of a bargain with Chinese rivals.
Unless apple can find a way to sell more phones in the Chinese market, investors shouldn’t think the new iPhone will be a great success