Roger Fingas
Apple's setbacks in the Chinese smartphone market can be directly linked to its decision to push iPhone prices even higher, research firm IDC claimed on Monday.
"The imbalance between the increasingly severe domestic market environment and Apple's high product unit price has led to the declines of iPhone shipments in Chinese market," the firm argued in a Chinese-language report seen by the South China Morning Post. The same study noted that Apple's 19.9 percent decline during the December quarter was far greater than the overall Chinese smartphone industry's 9.7 percent.
The company did managed to rise to fourth place, but only because local vendor Xiaomi did worse, plummeting 34.9 percent in the period.
Since the beginning Apple has been notoriously unwavering about its iPhone design and pricing policies, rarely making any concessions to accommodate different countries or even different income levels within the U.S. The company's "budget" iPhones are simply older models, and still relatively expensive — the iPhone 7 costs at least $449. The cheapest new iPhone is the XR at $749, and that price is $100 more than Apple charged for flagship models just a few years ago.
At $999-plus, the iPhone XS is out of range for most of the world, even in developed countries. In China, natively-developed phones by brands like Huawei can often cost a third to a half as much, while offering many of the same features, making them an attractive proposition to a cash-strapped population.
Apple's December quarter was bad enough that it decided it would indeed lower prices in China and other international markets, if only to reverse hikes made in response to exchange rates. While it has seen some success with this tactic, it remains to be seen if pricing issues will influence those of the 2019 iPhone models expected this fall.
Andrew Orr
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Wesley Hilliard
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Amber Neely
79 Comments
Honestly I probably would have bought more Apple stuff this year if it was more cost effective. I just can't justify the price with the way they price their stuff in Canada.
We're all beating dead horses here, probably.
But whoever I talk to, Apple fanatics or people who converted from Windows or Anroid over the last few years, agree that Apple's pricing has gone out of hand. Everyone agrees that quality costs money. Yet they unanimously say that the have to re-evaluate whether they can justify buying another Apple device or not.
Sure, Apple can start lowering prices. But it seems that the damage to Apple's reputation has already been done. In a lot of people's minds they are a company that is selling highly overpriced devices. This makes me sad. It seems like such a foolish mistake to make. I don't understand it.
Time Cook keeps talking about how expensive it is to develop these devices. But with the amount of cash the company is garnering every quarter, this seems like a desperate attempt to justify. People are not stupid. Developing the first iPhone, a truly revolutionary device, not evolutionary, with a much smaller marked, must have been very expensive. Yet it cost half as much as today's offerings. In a lot of people's minds - including mine - something just doesn't add up.
I think Apple has hit the wall on prices they think they can charge. iPhone prices are sky high. iPad prices are sky high. Really it's all shot up to crazy high prices for what you're getting. Remember when you could get a cheap Mac by just getting a mac Mini. Now those like everyone else shot up in price. For what you get at the so called CHEAP end is a joke. I have this new iPhone XS, but in 4 years when I go to upgrade once again as I upgrade every 4 years, will it be another iPhone? I'm sure not paying $1500+ for a new iPhone in 4 years. I am not a fan of Android or all of Google's spying, but if Apple is going to drive me over their with their insane prices!?!?!?! This phone of mine was $1100. Personally I don't think that OLED screen is much better than the LCD screens I've had. Apple had really just gotten greedy, and if they continue, people will start fleeing from them. I really do wish there was a 3rd choice. How about a comeback of Windows Phones!!!
Given the price increases, it forces most people to either adopt a longer upgrade cycle (spend $1200 every 4 yrs vs $650 every 2 yrs) or to stop buying Apple products...things are getting out of hand.