Apple's business in China may be losing its aura, and apart from Japan, South Korea, and Singapore, the company's expansion in other Asian markets has been very difficult, and its market position has not improved. The technology giant based in Cupertino, Calif., has caused a lot of shock in the global stock market. On Wednesday, Apple CEO Tim Cook told investors that the company lowered its revenue forecast for the first quarter of this year due to the iPhone's sluggish market in China.
According to Apple's data, its revenue from Greater China reached $11.4 billion in the fourth quarter of 2018, making it the third-largest market for apples after the Americas and Europe. During the same period, Apple's revenue from other Asia Pacific regions other than Greater China was US$8.59 billion (of which revenue from Japan was US$5.161 billion and revenue from other regions in the Asia Pacific region was US$3.429 billion). Except for Greater China and Japan, the company did not provide segmentation data for other countries.
Among countries outside China, Apple has performed well in mature and wealthy economies such as Japan, South Korea, and Singapore. In these countries, consumers are more able to afford Apple's expensive mobile phones. However, other countries in Southeast Asia and India, the overall economy is still in the process of growth, per capita income is still relatively low, and it is more difficult for Apple to open up markets in these places.
Japan and South Korea
Japan and South Korea are wealthy economies and are also categorized as the world's most mature smartphone and mobile device market. Apple has made great achievements in both countries. Apple is Japan's largest smartphone seller and the second largest smartphone seller in Korea.
In South Korea, Apple’s road to success is more challenging given Samsung’s and Samsung’s leading players in the local market.
However, data from the network analysis company StatCounter shows that Apple's market share in the Korean smartphone market last year has been ranked second, second only to Samsung Electronics, ahead of LG Electronics.
However, Japan and South Korea have entered the ranks of the world's fastest-growing countries. Therefore, in the next few decades, how much contribution these two countries can make to Apple's success is still a question mark.
South East Asia
With a population of more than 600 million in Southeast Asia, it is a huge potential market for Apple.
According to data from market research firm IDC, as of the end of the third quarter of last year, the company ranked first in the market share of Singapore, up to 39%. But in Indonesia, Thailand and Vietnam, the larger economies in the region, Apple's market position lags behind its competitors.
In Indonesia, Apple accounts for about 1% of the market. In most countries in Southeast Asia, Apple's smartphones are too expensive for most consumers.
Kiranjeet Kaurer, research manager at market research firm IDC in Singapore, said. “This is the biggest factor.” She said that this made most buyers unacceptable and could only choose cheaper Korean and Chinese handset manufacturers' products.
Indian market
India is one of the world's largest economies, but so far this market still faces important challenges for Apple.
According to market research firm Counterpoint Research, China's millet grabbed 27% of the Indian smartphone market in the third quarter of last year, surpassing Samsung Electronics' 23%.
The research report released by the market research company and another market research company, Canalys, did not separately list Apple's market share in India. Apple was included in the "other" company category, including Apple, Vivo and Oppo. Wait for Chinese brands and Micromax in India.
IDC's Kiranjit Kaul said that as of the end of the third quarter of last year, Apple's market share in India was 1%. According to IDC's third quarter of last year's assessment, the average selling price of the iPhone in the Indian market was $741, which is much higher than the overall average selling price of the mobile phone in the Indian market of $155.
Kiranjit Kaul said that India's middle class is increasing, but it still lacks the purchasing power like China. "I don't see any comparable places in India."
In 2016, Apple CEO Tim Cook visited India for the first time. At that time, the sales of iPhones showed a downward trend in many countries in the world for the first time, and India was the only new market for the mobile phone to rise against the market. During the visit, Apple’s headman said with confidence in an interview with New Delhi’s television station in India. “We have injected a lot of energy into India. Apple will not only stay here for a few quarters or years. We hope that the company can take root here for a thousand years."
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