That Apple is not doing well in China is something that has been observed for several quarters. The latest earnings announcement is just another reflection. By the way, several price reduction strategies that have worked well, although it is not what Apple wants. The company wants to once again firmly lead a market that has accounted for 20% of its annual income over the last decade.
However, expert analysts like Ming-Chi Kuo report that they will not achieve it, unless the much-rumored folding iPhone is brought forward. A device that in the latest reports points, at least, to 2028. Until then, the foldable fever in China has another winner. This is Huawei.
Lowering prices will not be enough in the long term
Apple’s bad situation in China is fundamentally due to the reduction in sales of its iPhone. And the smartphone continues to account for practically half of the company’s income each year. Combining this fact with what we mentioned in the introduction that China represents 20% of its profits, we observe that the importance of pampering the product there is key.
And it seems that Apple proposed that with a strong bet on iPhone price reduction which began in mid-January and continued both in April and last May. And although it might seem obvious that this would revive sales, you had to look at the data. At the moment, there are studies that already indicate a growth of 52%.
However, analysts like the aforementioned Ming-Chi Kuo do not see that this could be a successful strategy in the long term. Even less seeing what the current trends are in the country when it comes to choosing high-end phones.
Foldables are the first option for the Chinese
There are many folding iPhone concepts, like this one from Michal Dufka, but no signs of an imminent real launch
Kuo predicts that at the end of 2024 there will be a reduction of between 10% and 15% in shipments of iPhone 15 and future iPhone 16 compared to what the iPhone 14 and those same iPhone 15 obtained last year.
This decline is attributed to two factors fundamentally related to the preferences of the Chinese market: the rise of artificial intelligence functions and that Apple will begin to address this Monday at WWDC 2024 and, perhaps most importantly, folding phones like Huawei’s. These are largely a key to the brand’s success in its native country.
Kuo’s estimates also indicate that The next big revolutionary iPhone will take a while to arrive. More specifically in 2025, thanks to an iPhone 17 series that is already said to have design changes. Of course, nothing foldable.
We already warned that it looms very far away. The most optimistic do point to 2025, although there are still many doubts and the most reasonable thing is to imagine it in that period that includes 2026 and 2028. It is no longer just a matter of finding suitable components, but also fitting into a market beyond China.
Cover image | Concept by LetsGoDigital and @technizoconcept