Apple is facing still competition from its low cost rivals in China. Apple, the company that once enjoyed bumper sales in Chinese market, is now the third biggest supplier in China. It ranks behind Chinese firms Huawei and Xiaomi, whose smartphones are wildly popular both in China and outside the country. Other locals like Vivo and Oppo are immediately behind Apple.
The Guardian reported that Apple's sagging sales in China is a result of general trends in smartphone usage within its market. Most people own smartphones these days, and so, numbers of first-time buyers have slowed down. Earlier smartphones were replaced on an average frequency of 13 months, and this average period is now witnessing an increase.
These trends particularly affect Apple whose prices are very steep. An Apple smartphone is popularly conceived as a status symbol in China; however, the country is in the midst of an economic slowdown, which may trigger a shift towards cheaper and snazzier alternatives available in Chinese market.
According to International Business Times, Chinese companies like Xiaomi, Huawei and ZTE have received a leg-up by tech friendly policies adopted by China's government. China's government offers tax breaks, relaxed labor and environment standards for its smartphone companies.
International Business Times cites a recent research released by Counterpoint that mentions nine out of twelve leading smartphone manufacturers are based in China, which accounts for one third of total smart phones produced in the world. However, these companies are not slated to produce amazing results outside China's borders.
It is reported that though Apple faces tough competition in China, it can hardly be written off. Factors like Apple's cult status, China-specific iOS software, ability to command premium rates and better distribution channels shall give it an edge over other Chinese smartphone makers.