Global giant Apple Inc.'s China smartphone sales plunged almost 20% at the end of previous year, as local rival Xiaomi Corp.'s downward slide accelerated even more in the world's largest market, according to new data released on Monday.
Apple's decline in the world's largest mobile market was can be attributed to a slowing economy, the iPhone's hefty price tag, and lengthening replacement cycles among consumers.
The China market declined 10.5% for all of last year and has now notched five consecutive quarterly contractions, reversing several years of explosive growth that catapulted it to become the world's largest market.More news: Denver school leaders, teachers negotiate trying to avoid strike
In the final three months of 2018, shipments of Apple's iPhone dropped 19.9 percent year-over-year while Xiaomi saw its shipments slashed by more than a third compared to the same period a year earlier.
The smartphone users of brands like Apple is now contending with a plateauing global market after years of breakneck growth. As you'll see, IDC's findings are on par with what another research firm reported last month.
"Apple doesn't have a good go-to market strategy that fits the rapidly changing Chinese market", said Nicole Peng, a senior director at Canalys. For the iPhone, revenue dropped 15 percent to $51.98 billion. To compensate for the loss, Apple is trying to replace phone sales with revenue from services. Analysts said that Apple CEO may have masked the company's strategic mistakes in China's and the impact of fierce competition from fast-growing Chinese Android phone makers is not helping issues for Apple. It shored up its lead after unit shipments soared 23.3 per cent in the December quarter, leading all major brands, according to IDC. Chinese vendor Huawei Technologies gained market share at the expense of Apple, despite the arrest of its finance chief on allegations of bank fraud.More news: Beijing expresses anger at US Navy mission through disputed South China Sea
Xiaomi's shipment slump was due to a number of factors including the adjustment of product line and inventory channels, as well as the revamp of internal organisation, said IDC.More news: Captain Marvel "Connection" Spot