China used to be Apple's "magic" market and contributed to double the high growth. However, in the face of China's domestic cost-effective mobile phones, Apple's share quickly fell, and has now fallen to fifth place. Facing the status quo, Cook urgently visited China, expanded investment in China, improved the business cooperation environment, and tried to save the Chinese market.
Sales plummeted
According to media reports such as USA Today and Reuters, the US technology market research company IDC recently released detailed data on China's smartphone market in the second quarter. The data shows that Apple and China's local millet have experienced a sharp decline.
In the second quarter, Apple’s mobile phone shipments in China were only 8.6 million, down 32% year-on-year, and fell from third place to fifth place. IDC also pointed out that because Chinese consumers love big-screen mobile phones, Apple's newly upgraded four-inch mobile phone iPhone SE has not been able to stimulate Chinese buyers' desire to buy.
Another opponent, Xiaomi, is even worse. Xiaomi was once regarded as "China's Apple", but in the second quarter, Xiaomi's mobile phone shipments were only 10.5 million, down 38% year-on-year, from the first place to the first. Four.
Both OPPO and Vivo have seen significant growth. IDC analysis pointed out that these manufacturers have carried out aggressive marketing, and emphasized the differentiated features of products, leading to success.
The slump in sales in China will have a very negative impact on Apple. Previously, China was once the second largest market for Apple, and the sales performance of the iPhone in the Chinese market was also a key factor in the huge success of Apple's mobile phone worldwide.
However, due to the slowdown in China's economy and the increasingly fierce competition in the smartphone market, Apple's revenue in the second quarter of China plummeted 32% to $8 billion. China’s contribution to Apple is no longer as good as Europe’s.
Emergency visit to China
The slump in China’s mobile phone sales has prompted Cook and Apple’s management to look for other measures to increase revenue in China.
On Tuesday, Apple CEO visited China again in four months, saying that it will set up the first Asia-Pacific development center in China.
Reuters also pointed out that the background of Apple’s move was that its income in China had fallen sharply.
Apple said that the development center set up in China will integrate some of Apple's engineering and operations teams in China, and Apple hopes to deepen its relationship with Chinese partners and universities.
Previously, Apple also encountered some other difficulties in the Chinese market. For example, in May, Apple's iTunes digital books and digital movie stores were forced to temporarily close, mainly because the government departments strengthened the supervision of foreign-language content publishing business. Whether this business can be opened in the future is not yet known.
Apple also lost several IP litigations in China.
In the eyes of foreign media, Cook's frequent visits to China is a “charm offensive.†Apple hopes to strengthen cooperation with the government, developers and other commercial organizations to prevent the business in China from continuing to fall sharply.
In addition to setting up an Asia-Pacific development center, Apple also invested $1 billion in China's largest car company.
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