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Kuo: Apple Has Opportunity With iPhone XR in China as Chinese Rivals Face 'Lower Than Expected' Demand
In a research note obtained by MacRumors, Apple analyst Ming-Chi Kuo said cumulative smartphone shipments from four major brands on the Chinese market, including Huawei, Oppo, Vivo, and Xiaomi, declined 10 percent on a year-over-year basis during China's Golden Week, a national holiday and major sales period.
iPhone XR in (PRODUCT)RED
Kuo, writing on behalf of research firm TF International Securities, said the estimated 6.5-7 million shipments during Golden Week were "lower than expected." He called Huawei the "major winner" as the only brand with a year-over-year increase in shipments during the October 1-7 holiday.
The well-known analyst attributed the year-over-year decline to a lack of innovative selling points among Chinese-brand smartphones. Kuo is positive on the trends of triple-lens cameras and fingerprint sensors under the display in smartphones, but said only limited models currently support both functions.
Kuo also cautioned that the US-China trade war "may be affecting consumer confidence, which makes the replacement cycle longer."
A third reason is that some consumers—particularly existing iPhone owners—will opt for more affordable legacy iPhone models or wait for the iPhone XR, according to Kuo, who expects replacement demands for the iPhone XR in China will be better than last year's demand for the iPhone 8 and iPhone 8 Plus.
Extrapolating from Golden Week, Kuo said smartphone shipments in China in 2018 as a whole may be "lower than expected." He estimates shipments may decline 10-15 percent to 410 million units on a year-over-year basis.
Chinese brands have to rely on overseas markets for further growth, according to the research note, shared with investors Thursday. Kuo remains confident about Huawei's future shipment momentum because the brand has "the best competitiveness among Chinese brands in overseas markets," the note said.
As for Apple, the iPhone XR represents an opportunity for the company to increase its market share and revenue in the Greater China region, where it has faced increasing competition from the likes of Huawei, Oppo, Vivo, and Xiaomi.
With a lower starting price of $749 in the United States, the iPhone XR lacks some of the bells and whistles of the flagship iPhone XS and iPhone XS Max, including an OLED display and glass rear casing, but it has many identical tech specs and longer battery life than both of the more expensive models.
iPhone XR pre-orders begin Friday, October 19 in more than 50 countries, followed by in-store availability on Friday, October 26.
Kuo, writing on behalf of research firm TF International Securities, said the estimated 6.5-7 million shipments during Golden Week were "lower than expected." He called Huawei the "major winner" as the only brand with a year-over-year increase in shipments during the October 1-7 holiday.
The well-known analyst attributed the year-over-year decline to a lack of innovative selling points among Chinese-brand smartphones. Kuo is positive on the trends of triple-lens cameras and fingerprint sensors under the display in smartphones, but said only limited models currently support both functions.
Kuo also cautioned that the US-China trade war "may be affecting consumer confidence, which makes the replacement cycle longer."
A third reason is that some consumers—particularly existing iPhone owners—will opt for more affordable legacy iPhone models or wait for the iPhone XR, according to Kuo, who expects replacement demands for the iPhone XR in China will be better than last year's demand for the iPhone 8 and iPhone 8 Plus.
Extrapolating from Golden Week, Kuo said smartphone shipments in China in 2018 as a whole may be "lower than expected." He estimates shipments may decline 10-15 percent to 410 million units on a year-over-year basis.
Chinese brands have to rely on overseas markets for further growth, according to the research note, shared with investors Thursday. Kuo remains confident about Huawei's future shipment momentum because the brand has "the best competitiveness among Chinese brands in overseas markets," the note said.
As for Apple, the iPhone XR represents an opportunity for the company to increase its market share and revenue in the Greater China region, where it has faced increasing competition from the likes of Huawei, Oppo, Vivo, and Xiaomi.
With a lower starting price of $749 in the United States, the iPhone XR lacks some of the bells and whistles of the flagship iPhone XS and iPhone XS Max, including an OLED display and glass rear casing, but it has many identical tech specs and longer battery life than both of the more expensive models.
iPhone XR pre-orders begin Friday, October 19 in more than 50 countries, followed by in-store availability on Friday, October 26.
Related Roundup: iPhone XR
Buyer's Guide: iPhone XR (Neutral)
[ 69 comments ]
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8 months ago
If the Chinese market is disappointed with the "innovation" of current phone offerings, certainly the iPhone XR is not offering anything more then what companies like Xiaomi and Oppo have been offering for a year or more, also considering the XR will probably still be more expensive then the other Chinese flagships and is just a slightly retooled iPhone 8 with a notch.
I think its just a poor year for cellphone innovation as they are on the tock cycle where there is nothing really new to offer from all phone companies. Last year it was the notch and bezel free screens which drove up sales, this year its a second generation of this style of phone design and not much more is different across the board. Even the Xs phones are kind of lacking in appeal after the first burst of sales wear off.
I think its just a poor year for cellphone innovation as they are on the tock cycle where there is nothing really new to offer from all phone companies. Last year it was the notch and bezel free screens which drove up sales, this year its a second generation of this style of phone design and not much more is different across the board. Even the Xs phones are kind of lacking in appeal after the first burst of sales wear off.
8 months ago
A third reason is that some consumers--particularly existing iPhone owners--will opt for more affordable legacy iPhone models or wait for the iPhone XR, according to Kuo, who expects replacement demands for the iPhone XR in China will be better than last year's demand for the iPhone 8 and iPhone 8 Plus.
*grips iPhone SE* Yeah, I can understand that… *sniffles*
8 months ago
It's nice to see Apple became a trillion dollar company but profit on top of everything is getting ridiculous. I know you got to make investors happy and keep up Wall Street but how much more money these rich people need? I use to hear Steve Jobs words of making a difference on people's lives help mold for a better future. As he said as the technology matures and materials getting cheaper we see prices goes down but he also explains about why initial prices is high due to R&D and promises that eventually prices goes down for the upcoming generation. Now we only see prices are lower if you decide to buy the 2 year old device straight from Apple. I think it's time for Apple to return the favor to people that put them on the top and stop taking advantage of their customers because we still like them. Just sayin!
Jobs would fight the board about pricing , cause in his vision , the products were suppose to benefit all users , not just the elite . That is the problem with Cook, his job is to raise profits , he has no vision for Apple like jobs , slowly Apple is becoming an exclusive brand for the rich. Which is fine , but that was not Jobs vision, he genuinely wanted his products to improve everyone’s lives and tried to keep prices at that level.
8 months ago
('https://www.macrumors.com/2018/10/11/kuo-iphone-xr-to-drive-upgrades-in-china/')
In a research note obtained by MacRumors, Apple analyst Ming-Chi Kuo said cumulative smartphone shipments from four major brands on the Chinese market, including Huawei, Oppo, Vivo, and Xiaomi, declined 10 percent on a year-over-year basis during China's Golden Week, a national holiday and major sales period.
iPhone XR in (PRODUCT)RED
Kuo, writing on behalf of research firm TF International Securities, said the estimated 6.5-7 million shipments during Golden Week were "lower than expected." He called Huawei the "major winner" as the only brand with a year-over-year increase in shipments during the October 1-7 holiday.
The well-known analyst attributed the year-over-year decline to a lack of innovative selling points among Chinese-brand smartphones. Kuo is positive on the trends of triple-lens cameras and fingerprint sensors under the display in smartphones, but said only limited models currently support both functions.
Kuo also cautioned that the US-China trade war "may be affecting consumer confidence, which makes the replacement cycle longer."
A third reason is that some consumers--particularly existing iPhone owners--will opt for more affordable legacy iPhone models or wait for the iPhone XR, according to Kuo, who expects replacement demands for the iPhone XR in China will be better than last year's demand for the iPhone 8 and iPhone 8 Plus.
Extrapolating from Golden Week, Kuo said smartphone shipments in China in 2018 as a whole may be "lower than expected." He estimates shipments may decline 10-15 percent to 410 million units on a year-over-year basis.
Chinese brands have to rely on overseas markets for further growth, according to the research note, shared with investors Thursday. Kuo remains confident about Huawei's future shipment momentum because the brand has "the best competitiveness among Chinese brands in overseas markets," the note said.
As for Apple, the iPhone XR represents an opportunity for the company to increase its market share and revenue in the Greater China region, where it has faced increasing competition from the likes of Huawei, Oppo, Vivo, and Xiaomi.
With a lower starting price of $749 in the United States, the iPhone XR lacks some of the bells and whistles of the flagship iPhone XS and iPhone XS Max, including an OLED display and glass rear casing, but it has many identical tech specs and longer battery life than both of the more expensive models.
iPhone XR pre-orders begin Friday, October 19 in more than 50 countries ('https://www.apple.com/newsroom/2018/09/apple-introduces-iphone-xr/'), followed by in-store availability on Friday, October 26.
Article Link: Kuo: Apple Has Opportunity With iPhone XR in China as Chinese Rivals Face 'Lower Than Expected' Demand ('https://www.macrumors.com/2018/10/11/kuo-iphone-xr-to-drive-upgrades-in-china/')
8 months ago
iPhone is just getting too expensive. If I want a iPhone Xs, mostly like I have to get 256GB, and it will cost over $1300 after tax. It's like price of a Macbook Pro.
8 months ago
[doublepost=1539267771][/doublepost]
If you think the difference between your ancient 6s and an Xr/Xs is emojis, then you definitely shouldn't bother upgrading. P.s. 6s was actually a great phone, huge CPU upgrade and last with a headphone jack...
I know there is more to it than that, but when i can check every box on the list for things i need from a cell phone, the 6s hits them all. still.
If you think the difference between your ancient 6s and an Xr/Xs is emojis, then you definitely shouldn't bother upgrading. P.s. 6s was actually a great phone, huge CPU upgrade and last with a headphone jack...
I know there is more to it than that, but when i can check every box on the list for things i need from a cell phone, the 6s hits them all. still.
8 months ago
All set to pre-order three for the family. The XR is gonna kick it out of the park.
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