iPhone Sales in China Declined 24% in First Six Weeks of 2024

[SmugMaverick]

It is amazing how long Apple was able to survive Tim Cook's inadequate marketing and innovative brain. Sure, Apple needs to cater to shareholders and their desires for maximizing profit, but sometimes you make a few dollars less on units to deliver more value to customers, who will in turn show loyalty and buy more. This was why customers hardly ever complained to Apple under Jobs about Apple products being "overpriced."

In fact, people were lining up all day to buy Apple products at launch. You don't see that anymore, and don't bring up online sales for that because people were lining up for days to buy iPhone 4 when they could've just ordered online.

Chinese folks don't think it's worth paying extra to get Apple products anymore. iPhone was always the most expensive phone in the market; yet under jobs people lined up for days to get it. Not anymore.

If Apple doesn't change the leadership, it will be facing slow death.

Exactly

He put bean counter Jeff Williams in charge of hardware design ffs and all the designers left, look at the iPhone and how it's still using the same design for 6 years now.

soon to be announced iPad Pro "redesign" is just thinner.

I dread to think what he's got planned for Watch Series 10 this year.

iOS is so basic compared to everyone else, I know we keep hearing about AI coming in iOS 18 but IMO, it's too late.

I can't imagine a world where Apples AI is anywhere close to Google gemini or even HyperOS, look at Siri 🤣

 

[W2u7Yw4HaD]

Hmm deflation isn't going to mesh well with Apple's strategy of ever-increasing ASPs. Whilst the cost of everything else decreases year on year, Apple products get more expensive...

Exactly, what isn't making the Western news cycles is how bad the Chinese economy is doing right now. Its in the doldrums no matter how much the CCP wants to claim there is a 5% growth projected..

Then there are the rubbish AI language models that the local Chinese companies are putting into their new phones, is attracting people to those products also.

 

[The Game 161]

Deeply concerning.

Something is rotting at Apple. I think it is Tim Cook.

Funny because they sold 71 million iPhone 15 series in 3 months.

 

[nuff_said]

Apple is also unable to build airplanes, tanks, ships, rockets, or skyscrapers

Moot point as these weren't areas Apple was rumoured to be working in. Look, I get it, this is an Apple forum and everyone here tends to bleed Apple but the OPs point, although not favourably on this site, is valid.

 

[nuff_said]

Exactly, what isn't making the Western news cycles is how bad the Chinese economy is doing right now. Its in the doldrums no matter how much the CCP wants to claim there is a 5% growth projected..

Then there are the rubbish AI language models that the local Chinese companies are putting into their new phones, is attracting people to those products also.

I agree with the first paragraph simply because many people invested significantly into real estate and with Evergrande struggling it’s had a large downstream impact on many aspects of their market. Having said that, while the market is struggling, people are still buying phones and they’re choosing, for several reasons - price being one of them, to not buy Apple. Is there an anti-American sentiment in China? I couldn’t say; I’m not there on the ground. I’m sure that is a factor but I suspect not the largest one.

 

[zkap]

I quite agree with you, actually.

My comment was mainly in response to someone suggesting Apple's struggles are due to quality issues, but as far as I can tell, they have very few defects and other failures compared to their competitors.

That said, Apple has been playing it safe in terms of innovation but also using lower spec (not quality) components and that is why IMO their sales are tanking in China.

You said it well, Apple uses high quality hardware, but the specs are low.

It's a shame ProMotion is not nearly ubiquitous in Apple's line-up, considering the first product to get it launched in 2017. It increases margins today but will hurt Apple in the long run. They put USB-C in the iPad in 2018 and then had to be forced by an international organization to add it to the iPhone half a decade later.
Apple used to be premium, you pay more but you get more for it. Nowadays it's "you pay more so Apple gets more", and this cheapness that dilutes the brand is seen across a line of products (low base storage, overcharging for memory, lack of 120Hz screens, free iCloud still at a measly 5GB just like it has been forever etc.).

Apple is no longer a premium brand, you do get quality hardware but you get less advantages/features than the competition offers. It's not even a big issue that a competitor offers better specs, it's that over time Apple shows no progress in certain very crucial areas. Laptops released today start at 8GB of memory, the same as my Intel MBA that I bought on sale in 2017. It's not a matter of whether 8GB is enough, it's about standards. How do you even allow your brand to have this image of being cheap and counting pennies for every spec?

 

[Jim Lahey]

The reality distortion field is collapsing. Shields at 50%. She cannae take much more o’ this Cap’n 🫨

 

[paulvee]

The Chinese economy is not exactly roaring at the moment, either.

 

[WiiDSmoker]

Stop. Having. Marketing. Run. The. Show.

 

[k1121j]

Days like this i remember why Steve was so great. Steve Jobs wasn't ruled by the bottom line or the board. Clearly now Apple is ruled by profits and will ultimately be it's demise as a great company.

 

[toobravetosave]

apple fanboys don’t realize they live in a bubble and android phone hardware and experience is excellent these days

apple is relying on ecosystem lock-in and customer familiarity not merit

 

[Armada2]

innovate or die in the Chinese market.

More like copy or die 😂

 

[neuropsychguy]

Hmm deflation isn't going to mesh well with Apple's strategy of ever-increasing ASPs. Whilst the cost of everything else decreases year on year, Apple products get more expensive...

There are only a few places in the world with deflation right now. China is one of them, but it's not going to last long. It causes way too much economic chaos. Countries with resources, like China, figure out how to address deflation.

In any case, Apple's products have not been getting more expensive, especially if you factor in inflation.

Mid 2012 15" MacBook Pro without Retina Display: started at $1800 (i7, 4 GB RAM, 500GB HDD). With Retina Display: $2100.

The 14" MacBook Pros are comparable, based on usable screen real estate. They start at $1600. "Well, that's not a real "Pro" CPU". That's quibbling. The M3 in it is roughly 50,000x better (actual data, not just a random exaggeration... ) than the old Intel processor in the 2012 MacBook Pro. Or, we can compare the $1800 ($2420 in 2024 dollars) MacBook Pro to the $2000 M3 Pro MBP -- although the reality is the computer compares to the $2100 MacBook Pro with the Retina screen ($2800 in 2024).

That is an effective price cut of anywhere from $400 to $1200, depending on what you think is a fair comparison.

Even if you think the comparison should be with the 16" MacBook Pro ($2500), then it is priced less than the 2012 MBP with a Retina screen, factoring in inflation, and about the same as the base model without Retina screen.

 

[fatTribble]

The reality distortion field is collapsing. Shields at 50%. She cannae take much more o’ this Cap’n 🫨

Thank you for putting this in terms I can understand 🤭🖖

 

[JKLass]

Interesting that sales of Chinese-branded smartphones increased by about the same amount as Apple's iPhones decreased. This tells me that the notoriously meddling Chinese Communist Party [CCP] has made SUGGESTIONS kind of like "prove to us that you need an iPhone instead of one of our own products". The CCP can be exceedingly and dangerously nasty when its SUGGESTIONS are ignored. China is a dictatorship that is one of the worst kinds of markets to do business in because they can be so arbitrary.

 

[MilaM]

Nothing a new set of Emojis can't fix 🤣.

 

[MilaM]

Interesting that sales of Chinese-branded smartphones increased by about the same amount as Apple's iPhones decreased. This tells me that the notoriously meddling Chinese Communist Party [CCP] has made SUGGESTIONS kind of like "prove to us that you need an iPhone instead of one of our own products".

Maybe the preferences of Chinese consumers just changed? Similiar things seem to be happening in the car market with electric vehicles. Foreign brands have been loosing market share for years. The shift even accelerated when electric cars became more popular.

The question is, if this is a structural shift or just a symptom of the current economic slowdown.

 

[k1121j]

Apple is also unable to build airplanes, tanks, ships, rockets, or skyscrapers

You forgot trains and toasters.

 

[scrapesleon]

well apple state ai can save their sales there so we'll see

 

[blazerunner]

It's imperative for Apple to prioritize the enhancement of its product quality. Issues like millennial bugs, exorbitant pricing for Apple One/iCloud storage, and notably subpar hardware features need to be addressed promptly.

Apple's approach seems to be centered around maximizing profits by pushing boundaries with pricing, only to later introduce updates or fixes to regain consumer trust.

In essence, Apple needs to focus on delivering consistent quality and value rather than relying on strategies that may compromise customer satisfaction in the long run.

No;

It's the fact that it's locked down. Can't customize much, can't sideload apps, zero options for phones with MicroSD card slots, etc. The most expensive phone on the market doesn't have the most basic features. For some reason MacRumors praises this kind of phone?

 

[CarAnalogy]

I understand that critiquing Apple in a forum primarily for Apple enthusiasts can be challenging.
However, it's essential to highlight when certain hardware specifications, such as 128GB storage, 60Hz display, and around ~3400mAh battery capacity, and many others persist for years without significant improvement. This kind of game (using lower-quality components) can't last forever.

While this may save costs for Apple initially, it becomes increasingly apparent when competitors continuously offer similar or even better specifications, such as 256GB storage, 120Hz display, and battery capacities exceeding 4000mAh for standard models, often at a lower price point.

I mostly agree but I would like to point out that you said using lower quality components. I think the more accurate term is lower spec. They are getting dangerously close, with using single higher capacity NAND, and now rumored to use TLC and QLC NAND which is actually potentially lower quality.

Android generally looks better on paper but in my experience the actual quality doesn't often hold up. Samsung is its own thing and they compete directly with Apple and not really with Android 'other' but even there I think iPhone usually has higher quality, and certainly in my personal experience.

But yes, for the love of god bump up the storage and display refresh rate across the board.

Looking at pricing for the new Macs it's ridiculous. Literally no point getting the base model MacBook Pro if you want a single upgrade. Their pricing is just plain weird.

 

[DelayedGratificationGene]

Noise noise noise….

 

[pugxiwawa]

This is what Apple gets for putting out same exact phone 6 years in a row

 

[WWPD]

It's interesting that the iPhone is doing very well in the U.S., UK, Australia, Japan and Taiwan but not China. People saying that it's because the Chinese are so "advanced". No...it's the CCP encouraging (telling) it's people to support Chinese companies. Of course there are other factors probably at play, but to say that nationalism has nothing to do with it would be blind.

 

[Mousse]

Chinese folks don't think it's worth paying extra to get Apple products anymore. iPhone was always the most expensive phone in the market; yet under jobs people lined up for days to get it. Not anymore.

So it has nothing to do with the Gub'ment's policy banning the use of iPhones by Gub'ment workers and for government uses last September? You can't fight city hall; you can't beat the bureaucracy.