Apple phone was at once considered to be a luxurious possession, the phone many people just dreamt of owning. Apple phone since its inception has impressed millions, some with its designs, some with its features, and some with the its looks accompanied with detailed precision. However the current scenario is not the same. With many other telecom companies entering the market, Apple has got tough competitors to compete with and let me tell you something these competitors have now started affecting Apple at a greater pace.
As per some recent information, China has witnessed a downfall in the demand of iPhones. The major reason that has been noticed for the downfall of iPhones is the high price. As there are various other phones with almost similar features like in iPhone are now available in the market, people in China have started preferring for those phones which are comparatively reasonable and rich in features too.
In this past two decades, this is for the first time ever Apple Company has experienced downfall in the iPhone sales. To this Tim Cook, CEO of Apple said there are various factors responsible for the downfall of sales. Some of the factors he particularly mentioned were increase in the dollar price, additionally some customers who already have older models are sticking to it and are avoiding to experience the new models. But practically, price increase of iPhones is the expected reason of the major downfall in their sales.
On comparing iPhones with other phones, then Oppo and Huawei technologies co are offering phones with same features in the range of 4000-5000 yuan, where iPhone latest model XS Max is costing 9,599/- yuan. Even Vivo’s phones are turning out to be comparatively less in price than iPhone.
iPhone is considered to be Apple most important product as it bring major share of revenues to the company and is also acting as a subsidiary for various other Apple products like Apple Watch and AirPods. Not only the products, but even the services like App Store and Apple Music is somehow linked with the iPhones. Considering this the drop in iPhone sales has hit Apple really hard and also at a place like China which was once considered to be the hypermarket of iPhone. As per certain analysis, people living in China have an average monthly salary of 7850 yuan. With this amount, when they go to buy iPhone it is costing them more than a month’s salary.
The competition in China has increased at a greater pace and as a consequence people in China have started shifting to the competitors including OnePlus, Huawei etc. This has led to downfall in the Apple shares too by 10%. Not blaming the innovation of Apple phones, rather pricing of the phones can called to be the only reason for this major sales downfall.