Apple New Product Launch in September to Determine Company’s Position in the Smartphone Market
Chinese analysts are not confirming the new product launch happening this September, showing whether the new iPhone will be able to generate a new wave in one of the crucial smart phone market in the world. US tech giant Apple Inc has announced their sales in Greater China market has fallen 33 percent or down to $8.8 billion from $13.2 billion for the third fiscal year, this marked the highest decline among all regions.
The slump in the revenue in one of the country’s crucial overseas market has generated heated arguments in the industry, as Tim Cook, the head of the California based company stated his optimism in China adding that the revenue earnings in the region are affected by currency headwinds. Cook said that the company has a new incredible lineup pf products and is very bullish in creating a better long term opportunity. Apple’s services business grew 19 percent and the App store revenue was the highest ever as the installed based still continue to grow and transacting customers are hitting a all time record. Apple’s CFO Luca Maestri said that the company returned over $13 billion to investors using share repurchases and dividends and has completed $177 billion of the $250 billion capital return program.
Research director at Counterpoint Technology Market Research James Yan, stated that because of limited upgrades in the existing flagship the iPhone 6s/6s Plus compared to its previous generation and low demand of newly launched small sized iPhones, Apple is facing a fierce competition with local smartphones vendors in the medium range market that sells smartphones between 2,500 to 3,55 yuan per unit. Counterpoint said that home grown smartphone maker Oppo is the number one brand in China for the first time in June recording a 23 percent market share, followed by Huawei with 17.4 percent and Vivo with 12 percent while Apple placed fourth with 9 percent of the market share.
Statistics from IDC Quarterly Mobile Phone Tracker in China market is showing that Apple has dropped from second to fourth in the first quarter of this year, but still remained the top five ranking in the second quarter. IDC elaborated that to a larger extent the cheaper price, imrpved distribution constriction along with increased investments om commercial marketing and branding has an appeal in certain segments of consumers that chase on fancy designs and lower price in lower tier cities in China. As competition still exists, Apple performance depends in the upcoming iPhones launches happening in September.