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'China' Articles

Tim Cook Travels to China, Meets With Vice Premier and Developers

Apple CEO Tim Cook is in China this week ahead of the annual China Development Forum that promotes economic growth in the country. Cook was photographed at an Apple Store in Beijing's central Wangfujing shopping district on Thursday, where he attended a music-related Today at Apple session. On Friday, Cook met with developers and visited the Palace Museum, which has an ARKit-based app that offers tourists an immersive experience. Later on Friday, Cook met with politician Sun Chunlan, a Vice Premier of the People's Republic of China. The state-run news agency Xinhua claims that Sun made positive remarks about Apple and the company's role in Sino-U.S. relations. Cook, who has shared pictures of his trip on Weibo, is reportedly set to attend the annual China Development Forum in Beijing on Saturday. Cook co-chaired the event in 2018, calling for stronger data privacy regulations in the wake of the major Facebook and Cambridge Analytica data scandal. Cook will then likely take a direct flight back to California in time for Apple's media event on Monday at Steve Jobs Theater, where the company is widely expected to introduce two new services for streaming video and

Chinese Online Retailers Start Second Round of iPhone Discounts

Online retailers in China have begun discounting iPhones for the second time this year. Reuters reports that several mobile vendors this week announced discounts on iPhone models, including Apple's latest flagship iPhone XS and iPhone XS Max. Gadget retailer Suning.Com Co Ltd said it would slash the price of the iPhone XS by as much as 1,000 yuan ($148.95) from its official price. Suning had lowered the prices of other iPhone models in January along with other retailers, but those cuts excluded the iPhone XS. Pinduoduo Inc, an e-commerce site best known for selling inexpensive goods, has also said it would sell the 64GB edition of the iPhone XS for 6,999 yuan, a drop of over 1,000 yuan from the official price.JD.com is also reportedly poised to offer discounts on its Apple products, including the iPhone XS and XS Max, which escaped the online retail giant's first major round of discounts in January. Apple first dropped iPhone prices for third-party distributors in China on January 10, allowing vendors to purchase iPhones more cheaply and pass those savings on to customers. Apple cut prices on most iPhone models, but the XR saw the biggest discounts. Apple launched the price cuts after seeing iPhone sales fall significantly in China during the holiday quarter of 2018, leading to lower iPhone revenue than expected. One report said Apple was seeing improved iPhone sales in China following the price cuts. Apple has also partnered with Ant Financial, the finance arm of Alibaba Group Holding

Apple Launches Promo in China Offering Interest-Free Financing When Purchasing New iPhone

Apple is teaming up with Chinese payments company Ant Financial Services Group, along with several local banks, to offer local customers interest-free financing on iPhones in China (via Reuters). Apple is continuously looking to boost smartphone sales in China, and this appears to be the latest move in the company's long-term plan to do so. On its China website, Apple explains that customers can pay 271 yuan ($40.31) per month for the iPhone XR, and 362 yuan ($53.87) per month for the iPhone XS. If customers trade in older models of iPhone, they'll get cheaper installment plans. In total, customers buying an iPhone worth a minimum of 4,000 yuan (around $595) will qualify for interest-free financing that can be paid over three, six, nine, 12, or 24 months. Apple has always struggled with iPhone sales in China, and according to Strategy Analytics, the company shipped an estimated 2.5 million fewer iPhones in China in 2018 than in 2017. The company's products have historically been categorized as too expensive for the China market, losing out to low-cost alternatives from popular local rivals like OPPO, Vivo, and Xiaomi. In recent weeks, reports have suggested that Apple is seeing improved iPhone sales in China thanks to recent price cuts to the iPhone XR, XS, XS Max, and older models. According to Feng, data sourced from Alibaba suggests that iPhone sales on the site have increased by 76 percent in China since January 13, 2019. The launch of China's limited-time promotion follows similar offers that have rolled out to a few regions around the

Red iPhone XS and XS Max Rumored to Launch in China This Month, Again Dropping PRODUCT(RED) Branding

A red variant of the iPhone XS and XS Max could be launching in China sooner rather than later, if a social media rumor proves to be accurate. A Weibo post spotted by iPhoneHacks.com claims Apple will launch the red color models by the end of this month, in a bid to boost struggling iPhone sales in the region. The leaker, who claims to have received the tip from sources in Apple's supply chain, says that Apple will call the model "China Red," and not the PRODUCT(RED) branding that the company typically associates with the color. Apple globally launched a mid-cycle (PRODUCT)RED edition iPhone 7 and iPhone 7 Plus in March 2017 and a similar edition for the iPhone 8 and iPhone 8 Plus in April 2018, so the timing wouldn't be completely off. Apple already sells a (PRODUCT)RED variant of the iPhone XR. There's also precedent for Apple using a different name in China – the company dropped the PRODUCT(RED) branding in the country for both the iPhone 7 and iPhone 8 models, instead promoting them simply as additional colorways. Apple has partnered with the (RED) Global Fund for nearly 13 years to sell a variety of red-colored devices and accessories. For each product sold, Apple makes an unspecified contribution to HIV/AIDS charity. However sex remains a controversial issue in China, where AIDS and HIV have been characterized in the past as a consequence of contact with the West. Despite the lack of any PRODUCT(RED) mention in China, Apple CEO Tim Cook assured MacRumors in a March 2017 email that the

iPhone Sales Growing Following Price Cuts in China

Apple is seeing improved iPhone sales in China following some recent price cuts on the iPhone XR, XS, XS Max, and older models that were introduced earlier in January, reports Chinese site Feng. Apple dropped iPhone prices for third-party distributors in China on January 10, allowing vendors to purchase iPhones more cheaply and pass those savings on to customers. Apple cut prices on most iPhone models, but the XR saw the biggest discounts. Shortly after Apple implemented the pricing cuts, vendors in China started offering discounts on various iPhone models. The XR, for example, was available from JD.com for 6099 yuan ($899), while Suning, an electronics store similar to Best Buy, started selling iPhone XR for 6199 yuan ($914). Those prices are more affordable than the iPhone XR from Apple's own online store, where the device is priced starting at 6499 yuan ($958). According to Feng, data sourced from Alibaba suggests that iPhone sales on the site have increased by 76 percent in China since January 13. Suning, meanwhile, saw Apple traffic and sales "explode" with the iPhone 8, 8 Plus, and XR in particular seeing purchase boosts. Apple sales from Suning have increased by 83 percent since January 11. Apple launched the price cuts after seeing iPhone sales fall significantly in China during the holiday quarter of 2018, leading to lower iPhone revenue than expected. The Cupertino company is hoping sales will soar during Chinese New Year in February, improving overall performance in China. Apple is also promoting older iPhone

Strategy Analytics: Apple Shipped an Estimated 2.5 Million Fewer iPhones in China in 2018 Than in 2017

Apple shipped an estimated 34.2 million iPhones in China in 2018, down from 36.7 million in 2017, according to new data shared today by Strategy Analytics. During the fourth calendar quarter of 2018 (Apple's first fiscal quarter), Apple shipped 10.9 million iPhones, down from 14 million in the fourth quarter of 2017. Apple surpassed Xiaomi to become the number four smartphone vendor in the country, but its iPhone sales fell short of Huawei, OPPO, and Vivo, all Chinese companies that make more affordable smartphones. For 2018 in total, Apple came in fifth in China, trailing behind the four major Chinese smartphone vendors. Huawei was the number one vendor in China, shipping an estimated 105.1 million smartphones during the year. OPPO shipped 82.8 million, Vivo shipped 79.3 million, and Xiaomi shipped 50 million. Apple lost market share in the fourth quarter of 2018, but gained ground overall in 2018. Apple held 10.1 percent of the smartphone market in the fourth quarter of 2018, down from 11.5 percent in the fourth quarter of 2017. Apple's total 2018 marketshare was 8.4 percent, up from 8 percent. Despite the slight year-over-year jump, Apple trails all major Chinese smartphone vendors in the country when it comes to market share, including Huawei, OPPO, Vivo, and Xiaomi. Fourth quarter smartphone shipments in China declined by 11 percent annually, with a total of 107.9 million units shipped by all vendors. That's down from 121.3 million in the fourth quarter of 2017. Smartphone shipments also fell 11 percent annually, with 408.5 million smartphones

HomePod Now Available for Purchase in China and Hong Kong

Apple earlier this week announced that the HomePod would be available in China and Hong Kong on Friday, January 18, and as promised, the smart speaker is now available for purchase in both locations. HomePod is priced at 2,799 yuan in China and HK$2,799 in Hong Kong. In addition to being available from the Apple online store and Apple retail stores, Apple Authorized resellers in China and Hong Kong are also offering the HomePod for sale. Apple's Phil Schiller said that the company is excited to bring HomePod to China and Hong Kong in a statement made when the launch was announced.We're excited to bring HomePod to our customers in mainland China and Hong Kong markets. We can't wait for them to experience how great it sounds in their home, we think they are going to love it.Ahead of the launch of the HomePod in China and Hong Kong, Apple added Siri support for Cantonese and Mandarin in China and a Cantonese dialect in Hong Kong in a software update released in December. HomePod was first introduced in the United States, UK, and Australia almost a year ago, and has since expanded to Canada, France, Germany, Spain, and Mexico, in addition to China and Hong

HomePod Launching in China and Hong Kong on January 18

Apple today announced that its HomePod speaker launches in China and Hong Kong on Friday, January 18. It will be available for 2,799 yuan in China and HK$2,799 in Hong Kong from Apple.com, Apple Stores, and authorized resellers. Apple had previously announced that the HomePod would launch in China and Hong Kong in early 2019 and now we know it will be later this week. Siri on the HomePod gained support for Cantonese and Mandarin in China and a Cantonese dialect in Hong Kong in a software update last month. Apple's press release highlights how the HomePod can stream Apple Music genres such as Mandopop and Cantopop and other audio content from any AirPlay-supported apps, including QQ Music, DeDao, iHuman Story, Dragonfly FM, and Penguin FM in China, and Spotify, KKBOX, JOOX, and Podcast in Hong Kong. Apple's marketing chief Phil Schiller:We're excited to bring HomePod to our customers in mainland China and Hong Kong markets. We can't wait for them to experience how great it sounds in their home, we think they are going to love it.HomePod first launched in the United States, United Kingdom, and Australia in February 2018, followed by Canada, France, and Germany in June 2018. And in October 2018, Apple made the speaker available in Spain and

Apple Extends iPhone XR and iPhone XS Trade-In Promotion to Europe, Canada, Australia, China, Japan, and Elsewhere

Apple today extended its limited-time promotion offering extra trade-in credit towards an iPhone XR or iPhone XS to additional countries, including Australia, Canada, Japan, South Korea, the United Kingdom, and the United Arab Emirates. The promotion first launched in the United States in late November. Update: Apple continues to expand the promotion, with more European countries just added, including Austria, Belgium, Germany, France, the Netherlands, Italy, Spain, Sweden, and Switzerland. The promotion has also gone live in the China region, as spotted by 9to5Mac, including Hong Kong, Taiwan, and Macao. As in the United States, Apple is offering higher trade-in values for select older iPhone models towards the purchase of a new iPhone XR or iPhone XS. In Australia, for example, the iPhone XR starts at $1,229, but customers can purchase the device for as low as $849 when trading in an iPhone 7 Plus for a limited time. In certain countries, the promotion is only available at Apple Stores, but it is also available on Apple.com in some regions. Apple says the offer ends January 31, 2019 in China and Japan, but it has yet to specify a deadline in other countries. Many analysts have expressed concerns about weakening iPhone sales, and Apple's aggressive marketing of the iPhone XR in particular and its decision to stop disclosing iPhone unit sales starting next quarter fit that narrative. Apple's stock price is down nearly 30 percent since the day of its last earnings

Apple Confirms iOS 12.1.2 Addresses Qualcomm Patents, Introduces New Force Closing App Animation in China

Apple on Monday released iOS 12.1.2 exclusively for iPhones. The software update fixes bugs related to eSIM activation on the iPhone XR, iPhone XS, and iPhone XS Max, and addresses an issue that could affect cellular connectivity in Turkey on those devices, according to Apple's release notes. In China, as planned, iOS 12.1.2 also implements minor changes to address two Qualcomm patents that led to a Chinese court issuing a preliminary injunction on the iPhone 6s through iPhone X last week, according to Apple's release notes in Chinese. These changes were not mentioned in any other countries. A translation of the iOS 12.1.2 release notes in China:iOS 12.1.2 includes iPhone bug fixes. This update: - Fixes bugs with eSIM activation for iPhone XR, iPhone XS, and iPhone XS Max - Addresses an issue that could affect cellular connectivity in Turkey for iPhone XR, iPhone XS, and iPhone XS Max - Introduces a new animation when force closing apps - Updates share sheet for setting contact and wallpaper imagesMacRumors uncovered a video on Weibo of the new animation for force closing apps on an iPhone running iOS 12.1.2 in China. Rather than moving up and off the screen when swiped closed, which looks familiar to Qualcomm's patent in China, apps now appear to shrink into themselves when swiped closed. Video Credit: 灰原帆 / Weibo As noted on Twitter by our editor-in-chief Eric Slivka, it appears that Apple may have rushed the release of iOS 12.1.2 to address the Qualcomm patents and possibly other time-sensitive bug fixes. The update that was previously intended to be

Apple Seeking to Shift iPhone Production to Pegatron to Offset Chinese Qualcomm Ban

Apple is reportedly looking to shift production of older iPhones to Taiwanese supplier Pegatron in an effort to avoid losing billions in revenue as a result of its patent dispute with Qualcomm. Earlier this week, Qualcomm was granted an import ban on the iPhone 6s through iPhone X in China after the court found those devices violated two Qualcomm patents. However, according to documents seen by Nikkei Asian Review, smartphones produced by Pegatron are exempt from the ban because the Taiwanese supplier paid license fees for the contested software, whereas rival iPhone assemblers Foxconn and Wistron did not. One of the sources with direct knowledge of the situation said Apple had held initial discussions with Pegatron about whether the Taiwan-based company could take on more iPhone production to make up for the impact of the ban. No decision has yet been taken, however. [...] Taking into account a consumer shift to newer models, it is estimated that the order barring production of older iPhone models by Foxconn and Wistron could hit Apple's sales by some $5 billion in 2018 or 3% of total iPhone revenue. This could be halved to about $2.5 billion if Pegatron is exempted, two sources said. And if Apple later decides to ask Pegatron to step up production, the impact would be even less, the sources added.Apple has warned that upholding the iPhone ban would cause "truly irreparable harm" to Apple, other companies, and consumers if it is forced to withdraw its devices from the market. Late on Thursday, Apple said it will release a software update to iPhone

Apple Warns Chinese iPhone Ban Would Force a Settlement With Qualcomm, Result in 'Irreparable Harm' to Apple and Others [Updated]

In a court filing related to the ongoing dispute with Qualcomm that has resulted in a partial ban on iPhone sales in China, Apple this week warned that upholding the ban would cause "truly irreparable harm" to Apple, other companies, and consumers if Apple is forced to withdraw its devices from the market, according to Bloomberg. The ban would cost Apple millions of dollars a day and affect both the Chinese government and consumers, the company added, noting it has created 5 million jobs in China across the supply chain and third-party software developers. The Chinese government "may suffer hundreds of thousands of tax losses" from the iPhone ban because of lost taxes from sales of the devices, the company also said, citing estimates of 50 million units sold in the country in 2017. [...] "Apple and many other companies, consumers, and government will suffer truly irreparable harm," the company said in the filing.As a result, Apple says the ban would force Apple to settle with Qualcomm, a move that would lead the entire mobile phone industry to "relapse into the previous unreasonable charging mode and pay high licensing fees." Apple and Qualcomm have been locked in a patent battle over chip-related license fees, but the current issue instead stems from separate patents that cover allowing users to "adjust and reformat the size and appearance of photos" and "managing applications using a touch screen when viewing and navigating apps." Qualcomm earlier this week won an import ban on iPhone 6s through iPhone X models, although Apple has argued the ban does not

Qualcomm Now Seeks iPhone XS and iPhone XR Sales Ban in China as Legal Battle With Apple Intensifies

Qualcomm plans to file for an injunction on the iPhone XS, iPhone XS Max, and iPhone XR in China, which would theoretically prevent the sale of those devices in the country, a lawyer for the company told the Financial Times today. Earlier this week, a Chinese court granted an injunction on older iPhone 6s through iPhone X models in China after it ruled that those devices violated two Qualcomm patents, and the chipmaker now plans to assert those same patents against the latest iPhones amid an escalating legal battle with Apple. The first Qualcomm patent reportedly enables users to "adjust and reformat the size and appearance of photos," while the second is said to relate to "managing applications using a touch screen when viewing and navigating apps." In a statement issued following the ruling earlier this week, Apple said all iPhone models remain available for customers in China:Qualcomm's effort to ban our products is another desperate move by a company whose illegal practices are under investigation by regulators around the world. All iPhone models remain available for our customers in China. Qualcomm is asserting three patents they had never raised before, including one which has already been invalidated. We will pursue all our legal options through the courts.Apple has continued to sell the affected iPhone models in China because it believes the patent infringement ruling does not apply to iOS 12, leading Qualcomm to call on the Fuzhou Intermediate People's Court to enforce the injunction. Reports suggest that Qualcomm's latest efforts are an attempt to

Apple Store Expansion in China Said to Have Slowed Due to Red Tape, Fraud, and Other Factors

In 2015 and 2016, Apple aggressively expanded its retail presence in China with 30 new stores, according to the Apple Storefronts tracker. Since the start of 2017, however, Apple has opened just five new locations in the country. Apple's newest store in China in Suzhou The Information's Wayne Ma has shared a report today that offers explanations for the slowdown, including China's bureaucratic government, scalpers, previously-reported fraud, and increasing competition from Chinese smartphone makers. The report is based on interviews with 17 former Apple employees. On government bureaucracy:Apple had to navigate a maze of government bureaucracy to obtain everything from business and tax licenses to construction, fire and customs permits for imported building materials, former employees say. The regulatory framework in China is far more complicated than in the U.S., with many more layers of government, these former employee say, and it’s far more opaque. Employees frequently scrambled to chase down permits and local approvals to keep store openings on track, they said.On scalpers:Apple, too, had to contend with scalpers, known as "yellow cows" in colloquial Chinese. These scalpers swarmed its stores and elbowed out other customers during product launches and in-store promotions. … Apple executives worried they were losing control of the customer experience in their stores, and along with it opportunities to interact with real consumers. The scalpers showed little interest in the accessories and add-on services Apple likes to offer customers.Other factors, according

Apple Investigating Report of Forced Student Labor at Chinese Factory

Apple today said it is "urgently investigating" a report that claims Apple Watch manufacturer Quanta Computer has subjected teenage students to illegal work conditions at its factory in the Chinese city of Chongqing. "We are urgently investigating the report that student interns added in September are working overtime and night shifts," Apple said, in a statement issued to CNN. "We have zero tolerance for failure to comply with our standards and we ensure swift action and appropriate remediation if we discover code violations." In a report last week, Hong Kong labor rights group Students and Scholars Against Corporate Misbehavior said Quanta was "using significant numbers of student workers aged 16-19 years" to assemble the Apple Watch, under working conditions that do not comply with Chinese regulations or Apple's own standards. Based on an investigation during the summer of 2018, SACOM found that many students were forced to complete internships at Quanta, or face the risk of delayed graduation. The internships were often unrelated to each student's field of study, and lacked an educational component, according to the findings. "Our school told us that we will be deferred if we don't do the internship," said a student majoring in early education. "If we resign then we will also receive our graduation certificate half a year later than others." The report also found that students were often illegally required to work at least a few hours of overtime per day and overnight shifts. In its statement, Apple said it audited Quanta's factory in Chongqing

Supermicro CEO Joins Cook in Calling for Bloomberg to Retract Supply Chain Hack Story

Last week, Apple CEO Tim Cook called on Bloomberg to retract a highly controversial story suggesting Chinese spies planted microchips in the Supermicro server motherboards used in Apple's data facilities, saying there was no truth to Bloomberg's claims. Today, Supermicro Charles Liang joined Cook in calling for a retraction. In a statement shared by CNBC, Liang said that Supermicro has not found malicious hardware components in its products, nor has Bloomberg produced an affected Supermicro motherboard. Bloomberg, he says, should "act responsibly" and retract its "unsupported allegations." Liang's full statement:Supermicro is committed to making world-class servers and storage products. Bloomberg's recent story has created unwarranted confusion and concern for our customers, and has caused our customers, and us, harm. Bloomberg should act responsibly and retract its unsupported allegations that malicious hardware components were implanted on our motherboards during the manufacturing process. The allegations imply there are a large number of affected motherboards. Bloomberg has not produced a single affected motherboard, we have seen no malicious hardware components in our products, no government agency has contacted us about malicious hardware components, and no customer has reported finding any malicious hardware components, either.Supermicro, like Apple and other companies involved, has denied all of Bloomberg's claims since the story was first released. Supermicro previously said it was not aware of any investigation nor any companies that had found

Apple CEO Tim Cook Calls on Bloomberg to Retract Supply Chain Hack Story: 'There's No Truth to This'

For the first time since Bloomberg published a highly controversial story suggesting Chinese spies planted microchips in Supermicro server motherboards Apple used in its iCloud facilities, Apple CEO Tim Cook has gone on the record to vehemently deny the claims. In an interview with BuzzFeed News, Cook said there is "no truth" to the story about Apple, before making the unprecedented move of calling on Bloomberg to publish a retraction. Since the report went live earlier this month, Apple has refuted Bloomberg's claims in multiple clearly worded statements denying such an incident ever took place. Apple maintains that the story is "completely untrue," malicious chips were never found in its servers, and there was never an FBI investigation into the incident. Bloomberg has continued to stand by its original report, which, based on info obtained from 17 unnamed sources, said that Apple, Amazon, and other tech companies had purchased and installed Supermicro servers that had been tampered with by the Chinese government. Small chips were allegedly implanted into server motherboards, allowing China to access corporate secrets and other information. Apple did have an issue with Supermicro servers that led to the company dropping Supermicro as a supplier, but the relationship ended after malware was discovered on a single server in an incident unrelated to Bloomberg's claims. According to Apple CEO Tim Cook, though he only spoke out publicly about the Bloomberg story this week, he's been involved in Apple's response "from the beginning.""I personally talked to the

Apple Apologizes After Stolen Apple ID Credentials Aided in Phishing Attack in China

Apple has formally apologized to users in China over the hacking of some Chinese accounts in a series of phishing scams that hit the country last week. The successful phishing attacks used stolen Apple IDs to gain access to customer funds, leading to "a small number of...users' accounts" being accessed through these scams (via The Wall Street Journal). In a statement shared in China today, Apple said: "We are deeply apologetic about the inconvenience caused to our customers by these phishing scams." When news of the incident emerged last week, Chinese mobile payment companies Alipay and WeChat reported that hackers were able to take an unknown amount of money from accounts using stolen Apple IDs. Some users were said to have lost up to 2,000 yuan ($288) following the breach. According to Apple's new statement, these victims had not enabled two-factor authentication, making it easier for the hackers to gain access to their accounts. Apple didn't confirm how many users were affected in China, how much money was stolen in total, or how the hackers gained access to the Apple IDs in question. The company encouraged all users to enable two-factor authentication on their accounts to ensure further security protections are in place. China remains important to Apple's overseas expansion plans, but the company has faced numerous speed bumps in this regard over the years. In 2018, Apple moved Chinese iCloud data to state-owned China Telecom, which brought up user privacy concerns; faced an issue with an overabundance of illegal gambling apps on the Chinese iOS App

Kaspersky Lab Says Report Claiming China Hacked Apple's Former Server Supplier is Likely 'Untrue'

Russia-based cybersecurity company Kaspersky Lab today said that while "hardware supply chain attacks are a reality," evidence suggests Bloomberg Businessweek's report about Chinese intelligence tampering with server motherboards manufactured by Apple's former supplier Supermicro is "untrue." Apple data center Kaspersky Lab said the report "should be taken with a grain of salt" in its 14-page analysis of the alleged attack, obtained by MacRumors:The stories published by Bloomberg in October 2018 had a significant impact. For Supermicro, it meant a 40% stock valuation loss. For businesses owning Supermicro hardware, this can be translated into a lot of frustration, wasted time, and resources. Considering the strong denials from Apple and Amazon, the history of inaccurate articles published by Bloomberg, including but not limited to the usage of Heartbleed by U.S. intelligence prior to the public disclosure, as well as other facts from these stories, we believe they should be taken with a grain of salt.Kaspersky Lab added that the language in both Apple and Amazon statements denying the Bloomberg Businessweek report are "pretty strong" and "leaves little to no chance of retractions or denials at a later time." The firm added that the statements are regulated by the SEC in the United States. The key part of Apple's statement was as follows:On this we can be very clear: Apple has never found malicious chips, "hardware manipulations" or vulnerabilities purposely planted in any server. Apple never had any contact with the FBI or any other agency about such an incident. We

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