According to research firm IDC, last year Apple saw their first year-over-year decline in iPhone sales, with the company struggling to compete with lower priced smartphone such as Oppo, Huawei, and Vivo which currently dominate the Chinese smartphone market.
The overall growth in the smartphone market in China is said to be fueled by an “increased dependence on mobile apps” that led to consumers seeking device upgrades. In 2016 it was reported that China became the number one for App Store revenue on iOS devices however; it looks as if Apple has slowly been loosing interest from Chinese consumers for some time; with Europe taking the lead as Apple’s second biggest market last summer.
2016 was the first time ever that Apple saw a YoY decline in the PRC market. Even though the new black colored iPhones caught the attention of consumers, overall, the new launches did not create as much of a frenzy compared to the past. – Despite the decline, IDC does not believe Chinese vendors have actually eaten away Apple’s market share. Most Apple users are expected to be holding out for the new iPhone that will be launched this year, and that will help the brand to see a growth in 2017. Apple’s 10-year anniversary iPhone will also likely attract some of the high-end Android users in China to convert to an iPhone.