Strategy Analytics: ‘Apple is in danger of pricing the iPhone out of China’

According to the latest research from Strategy Analytics, China smartphone shipments tumbled 11% annually to reach 108 million units in the fourth quarter of 2018. Huawei was the star performer, while Apple and Xiaomi lost ground, per the research group.

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“Apple overtook Xiaomi and nudged up to fourth position with 10% smartphone marketshare in China in quarter four of 2018,” says Linda Sui, director at Strategy Analytics. “However, iPhone shipments dropped 22 % annually and this was the firm’s worst performance since early 2017. Apple iPhone has now fallen on a year-over-year basis in China for eight of the past 12 quarters.”

Apple has been under pressure in China for the past three years. Ongoing patent battles with Qualcomm are a distraction, while Apple is being heavily criticized for its expensive retail prices. Sui says Apple is in danger of pricing the iPhone out of China.”