A revolutionary phone with a whopping high price, how can it not be the answer to Apple’s China problems?
A decade ago Apple launched a phone that changed the whole mobile industry and changes it to the smartphone industry.
Ever since Apple has been sticking with the safe play, until this year.
On September 12, earlier this week Apple released the iPhone X that once again will change the whole smartphone experience.
“It better!” the price makes you say as you wipe tears from your eyes and tend a $999 void in your wallet.
And yet somehow even that is not enough to help Apple’s sales going downwards in China.
In 2015, when Apple released iPhone 6 and iPhone 6 plus, the shipment jumped up 70%.
But ever since the charts have taken a downward route.
On the 10th anniversary of the original iPhone, Apple did everything to make it special.
The unveiling of the iPhone trio was held in place none other than the $5 billion headquarters and the features of the iPhones were no less amazing.
Company’s most expensive smartphone yet, iPhone X, comes with an edge-to-edge screen and no home button.
Moreover, the fingerprint sensor is gone permanently and replaced by Face ID that analyzes your face to unlock the phone (which, by the way, failed miserably on its first public demo)
And then there is the augmented reality software and the emojis that can replicate your facial expressions in 12 different emoticons known as the Animojis.
But the price tag stands out despite all these features.
The features have convinced many consumers that the price is worth it.
But the Venn diagram of those consumers and consumers in Chine do not overlap.
And this has given the local companies a great space to fill up.
Why is this happening?
It is the result of more than one factors acting at the same time.
When iPhone released the iPhone 6 in 2015, no phone in the market could come even closer.
Apple was the king.
But now local companies have caught up to pace and are slowly but effectively making their way.
Xiaomi, for instance, seems to be rising unexpectedly.
Its Mi Mix 2 was released two days before the unveiling of iPhone X.
It has a completely bezel-less screen and a high-end feel with the ceramic finish.
And most amazingly, it costs half as much as the iPhone X.
Then there is Huawei that is almost a direct competitor to Apple now.
It released the Mate 10 in October that is also heard to be an all-screen smartphone with AI enabled Kiren 970 chipset.
And how can we forget OPPO that became China’s largest smartphone last year, thanks to the incredible shipment?
Word has it that they also are working on an all-screen phone.
An average person in China checks their phone only when they have to check WeChat or make a call.
Now with taxi-hailing, news, payment, etc. services the Chinese consumers see no point in paying so much for the upgrade in iMessages that they don’t even use.
As long as they have WeChat on their phones, they don’t care about much else.
This makes them very reluctant to pay so much for features they couldn’t care less about.
So is Apple a Flop in China?
It still holds all the high-end market but for how long?
Apple better does something before the local companies swoop in and steal the crown.
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