Apple's iPhone slipping in China because company won't adapt, says Oppo & Vivo founder

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in iPhone
Apple's decline in Chinese iPhone shipments during 2016 can be blamed on the company refusing to adapt its tactics to the local market out of fear of risking its business elsewhere, according to Duan Yongping, the founder of Chinese smartphone brands Oppo and Vivo.




Apple is for instance unwilling to pair lower prices with high-end features, Duan suggested in a Bloomberg interview. Without an installment plan an iPhone 7 starts at 5,388 yuan in China, or about $780, potentially as much as a person's monthly wages. Even an iPhone SE is 3,288 yuan, or some $476.

"Apple couldn't beat us in China because even they have flaws," said Duan. "They're maybe too stubborn sometimes. They made a lot of great things, like their operating system, but we surpass them in other areas."

Despite competing with Apple, Duan is actually a major Apple investor and a fan of CEO Tim Cook, with whom he claims to have met several times. Apple couldn't confirm any meetings between the pair.

Duan lives in Palo Alto, Calif., just a short drive from the new Apple Park campus in Cupertino.

During 2016 Apple slipped out of the top three smartphone brands in China to land in fifth. Huawei claimed the top spot, while Oppo and Vivo took second and third. Xiaomi claimed fourth, even though it was also hit with declining sales.

Apple is known to insist on high profit margins for the iPhone, in fact claiming the lion's share of profits in the smartphone industry. While the strategy has been succesful overall, it has also hindered the iPhone's entry into markets like China and India, where high prices can easily put it out of reach for the average person.

Oppo is hoping to entrench itself in India before Apple can achieve any substantial foothold, Bloomberg said. The latter company controls a tiny share of the Indian smartphone market, and is working to improve its lot with things like more resellers and local manufacturing. For years it has even resorted to selling cheap iPhones that are outdated in other regions -- most recently, it launched a 32 gigabyte version of the iPhone 6.
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Comments

  • Reply 1 of 40
    quadra 610quadra 610 Posts: 6,689member
    "We love Apple and look forward to them taking the lion's share of our country's market"...





    Said no Apple competitor ever. 
    edited March 20 jbdragonStrangeDaysedred1983urahara
  • Reply 2 of 40
    SpamSandwichSpamSandwich Posts: 26,254member
    Easy for companies which rely on intellectual property infringements to create their cheap phones to say.
    jbdragonmagman1979edredapple jockeystanthemanwatto_cobraMal_Ruraharacali
  • Reply 3 of 40
    rob53rob53 Posts: 1,490member
    I don't get it. The founder of two cheap Chinese phone brands lives in the US? Go figure.
    StrangeDayswatto_cobraMacsplosionMal_R
  • Reply 4 of 40
    These companies would love for Apple to appear to 'adapt', as then they would be seen as true competition. But for the market that Apple is currently interested in, they are really not, not even close. Until such point that Apple can no longer command the high end and take most of the profit in this sector, I think they will (and should) stay on the present course and ignore the Oppo, Vivo and Dittos.
    StrangeDaysmike1montrosemacswatto_cobrashaminoMal_Rdedgeckoration alurahara
  • Reply 5 of 40
    Quotes... "Apple is for instance unwilling to pair lower prices with high-end features" and "They made a lot of great things, like their operating system, but we surpass them in other areas."

    Ah yes... you are fastest in the race to the bottom!

    MetriacanthosaurusjbdragonStrangeDaysmike1SpamSandwichwatto_cobradedgeckoration alcali
  • Reply 6 of 40
    Quotes... "Apple is for instance unwilling to pair lower prices with high-end features" and "They made a lot of great things, like their operating system, but we surpass them in other areas."

    Ah yes... you are fastest in the race to the bottom!

    Almost verbatim what I came here to say. 

    "Winning" the race to the bottom, is not winning.
    jbdragonStrangeDaysmike1watto_cobracali
  • Reply 7 of 40
    sog35sog35 Posts: 12,408member
    Dumb Ass CEO.

    Remember when the CEO of Xiaomi was bragging how they would beat Apple? Xiaomi is pretty much a dead corpse now.

    And so will these other cheap POS China brand Oppi and Vivo.  Because there is always a new entrant who will make phones EVEN CHEAPER.
    jbdragonStrangeDaysslprescottwatto_cobraMal_Rdedgeckocali
  • Reply 8 of 40
    sog35sog35 Posts: 12,408member
    A phone costing a person's monthly wage is not a big deal.

    Remember when even basic laptops were $3k?  People making $30k a year would buy them.  I'd say a phone is much more important then a laptop ever was.
    watto_cobra
  • Reply 9 of 40
    sog35sog35 Posts: 12,408member
    rob53 said:
    I don't get it. The founder of two cheap Chinese phone brands lives in the US? Go figure.
    I would live in the US also.

    Get on the wrong side of a politician in China and your head is on a platter.
    watto_cobraMal_R
  • Reply 10 of 40
    sog35sog35 Posts: 12,408member
    "Apple couldn't beat us in China because even they have flaws," said Duan. 

    How much profit did you make last year Duan?

    I'd say Apple easily made 1000% more profit than your cut rate phone brand.

    These guys are real idiots thinking number of phones sold = success.

    When an even CHEAPER China brand comes along then Vivo/Oppo will be screwed. Just like how Huawei SCREWED Xiaomi. And Vivo SCREWED Huawei.
    watto_cobracali
  • Reply 11 of 40
    jbdragonjbdragon Posts: 1,230member
    A race to the bottom in profits. Put it in simple terms as this is pretty much what is going on. Who would you rather be, Apple selling 1 iPhone and making a $50 profit or these other company's selling a zillion Android phones and breaking even? How about Apple selling 10 iPhones and now making a $500 profit while they sell 10 zillion Android phones and still break even. So who's winning? Well for them, they say they are, they sold 10 zillion phones and have a biggest chunk of the market share. Anyone else with a brain will say Apple won. They actually made a $500 profit and only had to sell 10 phones to do it. As they say work smarter, not harder!!!!
    mike1randominternetpersonwatto_cobrashamino
  • Reply 12 of 40
    StrangeDaysStrangeDays Posts: 1,413member
    This just in -- competitors think Apple isn't perfect. Film at eleven."
    watto_cobra
  • Reply 13 of 40
    sog35sog35 Posts: 12,408member
    Check out their website:

    http://www.oppo.com/en/smartphone-f1-plus

    Its pretty pathetic how much they shamelessly copy Apple.

    I mean seriously. Copying App icons and even friken screen savers. my god. so pathetic.
    StrangeDayswatto_cobraMal_R
  • Reply 14 of 40
    sog35sog35 Posts: 12,408member
    jbdragon said:
    A race to the bottom in profits. Put it in simple terms as this is pretty much what is going on. Who would you rather be, Apple selling 1 iPhone and making a $50 profit or these other company's selling a zillion Android phones and breaking even? How about Apple selling 10 iPhones and now making a $500 profit while they sell 10 zillion Android phones and still break even. So who's winning? Well for them, they say they are, they sold 10 zillion phones and have a biggest chunk of the market share. Anyone else with a brain will say Apple won. They actually made a $500 profit and only had to sell 10 phones to do it. As they say work smarter, not harder!!!!
    Not quite correct.

    Apple makes about $200 on every iPhone sold.
    And cheap brands like Oppo actually lose money on every phone sold.

    In other words Oppo = winning
    watto_cobra
  • Reply 15 of 40
    brucemcbrucemc Posts: 1,026member
    Apple has developed a strong global brand that is, among other things, "aspirational".  It is one of the many parts, aside from the product features & quality, that allow Apple to command premium pricing.  You don't stay aspirational as a premium brand if you cut your prices to fight with the "good enough" mass market vendors.  For some reason, this simple reality fails to be understood by the media the world over.
    StrangeDayswatto_cobraration al
  • Reply 16 of 40
    Apple couldn't beat us in China because even they have flaws," said Duan. "They're maybe too stubborn sometimes. They made a lot of great things, like their operating system, but we surpass them in other areas.
    The most asinine, ignorant, arrogant, obtuse thing I've heard so far this Monday...
    sog35 said:
    Check out their website:

    http://www.oppo.com/en/smartphone-f1-plus

    Its pretty pathetic how much they shamelessly copy Apple.

    I mean seriously. Copying App icons and even friken screen savers. my god. so pathetic.
    WOW, just WOW... They put Samsung to shame!

    Here's what I tell that douche:

    watto_cobraration al
  • Reply 17 of 40
    mike1mike1 Posts: 1,194member
    So, in other words, Apple's insistence on making profitable products is hurting marketshare.
    Do they ever learn that those who chase marketshare over profits never win?
    StrangeDayswatto_cobra
  • Reply 18 of 40
    I still think that Apple didn't make what many high-end users want in China: dual SIM cards iPhones. They go nuts over there dual sim card phones.
  • Reply 19 of 40
    The Oppo/Vivo CEO sounds similar to the LeEco CEO last year.

    Let's see what happens to the company throughout this year.


    watto_cobraration al
  • Reply 20 of 40
    sog35sog35 Posts: 12,408member
    The Oppo/Vivo CEO sounds similar to the LeEco CEO last year.

    Let's see what happens to the company throughout this year.


    And Xiaomi CEO the year before that.....
    StrangeDayswatto_cobra
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