Apple maintaining iPhone sales volume in plummeting Chinese smartphone market
Smartphone shipments in China are continuing to drop year-over-year. Not only is Apple holding on to estimated sales volume in the country, but the iPhone X and iPhone 8 Plus are both on the list of top five smartphones sold in the country.
According to statistics released Tuesday by Counterpoint Research's Market Monitor service, smartphone shipments in China once again declined in the second quarter. The continuing decline was attributed to consumers keeping their older models rather than buying new ones.
"The Chinese smartphone market has been declining YoY since Q3 2017. This is the first time that any large smartphone market has seen this kind of correction with four consecutive quarters of decline," James Yan, Research Director at Counterpoint Research, said as part of the release. "This is mainly because, consumers have been holding onto their smartphones for a longer period as the incentive to upgrade and perceived differentiation for the new launches has so far failed to convert some of the consumers to upgrade."
Huawei, helped by the growth of its sub brand Honor, was the only manufacturer to post year-over-year growth. Huawei now has 26 percent of market share, followed by Oppo with 19 percent, Vivo with 18 percent, Xiaomi with 13 percent and Apple with 9 percent.
"During the quarter, share of online sales for Apple grew both sequentially and annually due to comparatively higher discounts available on online as compared to offline channels," Flora Tang, Counterpoint's research analyst, said in the note. "E-commerce is now a key part of Apple's channel strategy in China, contributing to almost a third of its total sales in China. Riding on the trend it was the third largest brand in terms of sales volume during the 618 festival. iPhone X and iPhone 8 Plus surprisingly remained one of the popular and top selling models in China during Q2 2018"
According to statistics released Tuesday by Counterpoint Research's Market Monitor service, smartphone shipments in China once again declined in the second quarter. The continuing decline was attributed to consumers keeping their older models rather than buying new ones.
"The Chinese smartphone market has been declining YoY since Q3 2017. This is the first time that any large smartphone market has seen this kind of correction with four consecutive quarters of decline," James Yan, Research Director at Counterpoint Research, said as part of the release. "This is mainly because, consumers have been holding onto their smartphones for a longer period as the incentive to upgrade and perceived differentiation for the new launches has so far failed to convert some of the consumers to upgrade."
Huawei, helped by the growth of its sub brand Honor, was the only manufacturer to post year-over-year growth. Huawei now has 26 percent of market share, followed by Oppo with 19 percent, Vivo with 18 percent, Xiaomi with 13 percent and Apple with 9 percent.
Apple's China share
Apple's growth is flat year over year, although it gained a point of market share because of the contraction. In terms of individual models, the iPhone X and iPhone 8 Plus ranked third and fourth, each with about three percent of the market."During the quarter, share of online sales for Apple grew both sequentially and annually due to comparatively higher discounts available on online as compared to offline channels," Flora Tang, Counterpoint's research analyst, said in the note. "E-commerce is now a key part of Apple's channel strategy in China, contributing to almost a third of its total sales in China. Riding on the trend it was the third largest brand in terms of sales volume during the 618 festival. iPhone X and iPhone 8 Plus surprisingly remained one of the popular and top selling models in China during Q2 2018"
Comments
But yes, Samsung warned that the smartphone market will continue to under-perform for them for at least the next couple of quarters. Apparently chip sales are expected to pick up the slack?
Buyers of these handsets have no need for the advanced features of true smartphones, ergo they hold onto them for much longer than true smartphone owners do.
This is why I wish the research firms would break sales into two categories: those selling for more than $400, and those selling for less than $400. In the above $400 segment Apple has no peers and nearly all of the entire industry's profits.
Today, some articles were mentioning if Apple had a good quarter it would be a lot closer to that elusive $1T mark, but I'm fairly certain that won't happen. $938B is a long way from $1T considering how Apple stock has been doing as of late.
Looks excellent!
iPhone ASP $727...
Giving Share Count, which makes sense.