Apple Inc and Xiaomi Corp both faced a decline in shipments in China in the December quarter, the worst performing species among the five largest suppliers in the country, including a decline in demand on the world's largest smartphone market.
Apple reported a 19.9 percent drop in shipments in China in the fourth quarter, but climbed to No. 4 in smartphone shipments after Xiaomi got worse, tumbling 34.9 percent over the same period, according to a report by IDC, the industrial researcher, published on Monday. Total industry shipments for China fell 9.7 percent to 103 million units.
Analysts expect iPhone price slump in China as Apple seeks to revive the sales trend, Huawei recorded a 23.3 percent gain, while second and third place Oppo and Vivo
Mens Apple CEO Tim Cook owed the weak Chinese economy when the company announced last year a downgrade of the quarterly revenue guidance that ended in December, analysts said he may have glanced over strategic failures in the world's largest smartphone market and the effects of fierce competition from rapidly improving Chinese Android handsets.
Cupertino, California-based Apple's latest iPhone models, which are mainly priced over US $ 1000, face a tough challenge from Chinese branded goods that cost about half or one-third less.
"The imbalance between increasingly serious home market and Apple's high product price on a device has led to the decline of iPhone shipments in the Chinese market," said IDC in the Chinese-Spanish research report shared by its official WeChat account.
Huawei has no plans to sell Mate 20 flagship phones in the United States
Huawei's unabashed strategy has enabled the Shenzhen-based company to cater to consumers in various price celebrations. Oppo and Vivo have launched premium phones to expand the product line.  Apple said it will pursue iPhone price reductions in markets that have been impacted by stronger dollars, although unspecified names in some markets, analysts have widely expected an official price decline for iPhone in China, as authorized third-party vendors like JD.com already sell the new iPhones with up to 20 percent price reduction.
Xiaomys shipping decline guilt A number of factors, including adjusting the product line and storage channels, as well as revolutionizing the internal organization, said IDC.
In January, Xiaomi announced that the Redmi budget product line would act as an independent brand to sharpen competitive advantages and expand overseas.