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China iphone user’s transfer to Huawei


The US issued a blockade order against Huawei, which has prompted many users in China who were originally iPhone iron powder to switch to Huawei smart phones.

South China Morning Post reported on the 22nd that Wang Zhixin, the manager of China’s largest solar module manufacturer, first converted the camp in 10 years. When he replaced the iPhone 7 that had been used for three years earlier in May, he decided to buy “Huawei P30”. . Wang said that when he saw the trade war between China and the United States, he believed that there was a need to support domestic products. Moreover, Huawei has always been known for its higher quality and more reasonable prices. Sam Li, who works for a state-owned telecommunications company, recently decided to switch from the Apple camp to Huawei because “when all the company executives use Huawei phones, it’s a bit embarrassing to pick up an iPhone from their pockets.”

In fact, more and more people in China have switched from Apple’s smart machine to Huawei. IDC survey of technology market regulators showed that Huawei’s smart machine shipments totaled 206 million last year, of which 105 million were sold in China, and the market share in China reached 26.4%. In comparison, Apple’s China market share is 9.1%, the fifth largest label. However, the market survey of the Counterpoint survey shows that by the first quarter of this year (January-March), Apple’s market share has shrunk to 7%, while Huawei’s market share has increased by 3 percentage points.

IDC pointed out that competitors continue to erode the market share of the iPhone. Although Apple adopted a price reduction strategy in China, it also offered a preferential trade-in solution, but it was not enough to attract consumers to upgrade. Iaker Markit senior analyst Zaker Li also believes that Apple’s China market share is likely to continue to fall. In addition to political factors, Apple’s product mix and pricing strategy are the core factors leading to shrinking market share.

Reuters, MarketWatch and other foreign reports, HSBC analyst Erwan Rambourg just released a research report on the 20th warning, it is difficult for Apple to quickly get out of China’s predicament. He pointed out that due to the Sino-US trade war, Apple faced two major challenges in China. First, Chinese consumers may accelerate the replacement of the iPhone and switch to domestic products, driven by the warming of the trade war. If Apple is forced to raise prices because of a new wave of tariffs, it will also discourage Chinese consumers.

Rambourg said that China has contributed a lot to Apple’s product and service revenues, which is a major risk. He decided to cut Apple’s target price from $180 to $174.

Apple’s share price rose 1.92% on the 21st, closing at 186.60 US dollars; the 20th closing (183.09 US dollars) hit a low close since March 13.

The trade war is hidden and it is difficult to disperse in the short term. On the 20th, Chinese President Xi Jinping laid flowers at the starting point of the Red Army’s Long March in Yudu County, Jiangxi Province, suggesting that the trade war may not end soon. In addition, CNBC also quoted unnamed sources last week as saying that Sino-US trade negotiations have stalled.

(first source: Apple )

Pooja Kaintura
Pooja Kaintura is Managing Editor at TechGrits. Unconditional fan of technology and culture wants to share the knowledge acquired with everyone.

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