Apple is Losing Again, Number of iPhone Users in China Declines

It was reported recently, that apples continues to experience a decline in the number of users iPhones in China. This significant decline affected the brand's global revenue. 

The reason is, China is one of the largest market shares owned by Apple so far. So, it is natural that Apple is experiencing great anxiety. 

Plus, Apple's rival, Huawei, is intensively promoting its newest line of smartphones.

Before Huawei showed its fangs again, this vendor had disappeared from circulation due to the implementation of a blockade where Huawei was prohibited from marketing its products outside China for two years.

Even though tensions between China and the West are still ongoing, this does not affect the country's economy.

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Apple Loses Deals, iPhone Sales in China Drop 4% Year on Year

Reporting from the Giz China portal, based on data compiled by UBS, it was reported that Apple iPhone sales in China fell by 4% YoY or Year on Year. 

Meanwhile, UBS also revealed that Apple only shipped a total of 17.4 million iPhone units. This number has decreased quite rapidly compared to February 2023, when units shipped worldwide were 18.1 million units.

This sizeable reduction occurred in China, India and the United States itself.

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Local Brands Are Increasingly Popular, Causing Changes in Consumer Preferences in China

The cause behind the decline in iPhone sales is attacks brands local like Huawei, Oppo, redmi, and so on which offers features that are no less cool, even on par with the iPhone.

For example, the launch of the Huawei Mate 60 5G which succeeded in flooding the Huawei store with customers in China. In contrast to the initial launch of the iPhone 15 which only got a small number of customers.

Reflecting on the best-selling Huawei Mate 60 5G some time ago, it proves that the preference and level of consumer confidence in China in the presence of a new line of smartphones has increased rapidly recently.

Apple Lays Off 600 Employees, Is It Related to the Decline in iPhone Turnover?

According to Gizmochina, as many as 600 employees had to be laid off following the termination of their two biggest technology projects, Project Titan where driverless cars would be operated and the development of Micro-LED screens.

Had acquired LuxVue Technology in 2014 to develop Micro-LED screens for the Apple Watch. Unfortunately it had to be canceled at the beginning of the year resulting in massive layoffs.

Likewise, Apple's other ambitious project, namely Project Titan, also stopped last month. 

For your information, Project Titan is an ambitious project carried out to create a car that can be controlled automatically without the help of human power.

The termination of these two prestigious projects had to be taken due to concerns about costs that were predicted to increase and the executive's clarity regarding the direction of the project.

However, not all employees who worked were immediately laid off, some of them were transferred to the AI development section (Artificial Intelligence), and some others had to be laid off.

Apple provides an explanation regarding the termination of employment to its employees. He said that the company is overhauling its operations strategy to focus on AI.

This was also proven by the closure of the Siri data operations office, a feature that had become a mainstay for Apple users at that time. The closure of Siri's operations gives their employees the option to move to Austin, Texas, United States.

So these layoffs have absolutely nothing to do with the decline in iPhone smartphone turnover.

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Chinese Cell Phones Continue to Dominate, Up to 64%

Returning to the discussion, the decline in revenue from iPhone sales in China provides an opportunity for local vendors to regain their position as the best-selling brand.

The latest report issued by Counter Point states that iPhone sales have decreased to 24% in the first six weeks of 2024 compared to the previous year.

The reason behind this is because the features of its competitors are getting better and these features even surpass the performance of the iPhone. This attack then puts pressure on Apple in marketing its products.

This decline did not only occur in China, India was also reported to have experienced a decline in turnover of 13% year on year. The decline in turnover on the iPhone will certainly be a big PR for Apple CEO Tim Cook in the future.

So, that's our discussion this time. And don't forget to top up your favorite games easily, quickly, safely, and of course the cheapest only at VCGamers Marketplace!