Apple’s struggle with the Chinese market is underlined by two key elements: the company’s reliance on a single product, the iPhone, and the growing competitiveness of local rivals. The iPhone’s declining popularity in China is due to a combination of high prices and a lack of innovative features. This has resulted in a market share drop from 14.3% in 2015 to 9.6% in 2016.
Moreover, local competitors like Huawei, Vivo, and Oppo are catching up, offering similar features at a fraction of the cost. These brands are also capitalising on their deep understanding of local consumer preferences. Unlike Apple, they have the flexibility to customise their products for the Chinese market, making them more appealing to local consumers.
Apple’s services, which include the App Store, iCloud, and Apple Music, have also been hit. Chinese regulations, combined with local competition, have hindered their growth. For instance, the government’s crackdown on iBooks and iTunes Movies has significantly impacted Apple’s digital content offerings.
Apple’s China problem is not just about competition or regulation, but also about its own business model. The company’s inability to diversify its product portfolio and adapt to local market conditions is a crucial factor in its declining market share. This single-product dependence and lack of localisation are the main reasons for Apple’s struggle in China.
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