The strategy not to say on cheap iPhones makes Apple miserable


According to Gartner, Apple's failure to produce cheap iPhones for consumers in markets such as China, India and other emerging markets has caused their smartphone sales to drop in three years. above.

Strategy to Say No to Cheap iPhone Makes Apple Miserable - Photo 1.

Smartphone sales in all markets declined in the last quarter, the most significant period of the year. However, out of the five largest smartphone companies on the market, Apple is the company with the worst performance. This change helped Samsung consolidate its position in the first place in the smartphone market.

The biggest surprise in 2018 is that Huawei has great success in both sales and market share. This helps the Chinese telecommunications operator gain third world rankings despite the many security and security scandals.

Take a look at some of the remarkable numbers provided by Gartner:

– Apple sold 64 million iPhone in Q4 / 2018, from 73 million in the same period last year.

– At present, Apple represents 16% of the world market share, from 18% in Q4 / 2017.

– The Chinese market is where Apple is destroying more, the market share of "apples" in the country billions of dollars is only 9%.

– Samsung also saw a decline in sales and market share of just 17%, from 18% in 2017.

– Huawei sold 60 million smartphones in Q4 / 2018, sharply from 44 million in the same period in 2017.

– Huawei currently represents 11% of the global smartphone market share.

According to Gartner, these are the worst numbers for Apple since the first quarter of 2016. Gartner's figures are in line with Apple's first quarterly financial report.

The problem of Apple and Samsung is, according to Gartner analyst Anshul Gupta, that they are mainly attracted to users who are upgrading their machines. Specifically, these two companies only target users using iPhone or Samsung.

Her strategy of saying not to cheap iPhones makes Apple miserable - Photo 3.

Meanwhile, Chinese companies are appealing to first smartphone buyers in emerging markets such as China, India and Latin America because they offer a variety of phones at multiple prices and multiple The number is significantly cheaper than the iPhone.

"When it comes to a basic smartphone, which costs about $ 250, Chinese companies offer better value for smartphone novices."Gupta said. "Only at this price the users received a smartphone with four cameras and that made them happy, continuing to buy the devices of these companies the next time."

With this strategy, Chinese brands such as Huawei and Oppo may continue to grow in sales in the near future.

Apple will not create a cheap iPhone to increase sales

Apple has made 2 cheap iPhone launches in development history. Although the fate of these two iPhones is quite different, the iPhone 5C is a failure, but the iPhone SE loves users, but the point is that everyone has been dying so far.

Gupta said Apple would not launch a cheap iPhone model to attract consumers with limited budgets. "They always try to focus on value rather than market share.", he said.

In other words, although it is not able to sell as many smartphones as Chinese companies, Apple is making even more money for every iPhone sold.

"If you start focusing on cheap smartphones, the desire of consumers to own iPhone will decrease."Gupta said. "They will keep the" premium "of the iPhone brand."

Even so, Apple will be in trouble if it continues to allow Chinese brands to boost their brands as well as expand their loyal user groups. By refusing to attract consumers to emerging markets, iPhone becomes an unknown choice for the first users to buy smartphones.

Instead, Chinese businesses, usually Huawei, have tried to attract both rich and close users. Huawei's P and Mate series are targeted at the high-end market while the Honor brand is for those who want to buy cheap smartphones.

"Huawei takes advantage of all of the above market trends in the best possible direction," Gupta said. "They have worked so hard for the past three or four years to make their mark on every market. Huawei is doing very well in Europe."


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