Apple's problems have been compounding lately, from their anticipated 2017 gadgets release to falling revenues. For the latter, China may have a hand in that, as the iPhone no longer seems to be the go-to smartphone in the country. In fact, Sleeping Giant sales, as well as Hong Kong and Taiwan, have decreased to an all-time low.
For the second quarter of the current fiscal year, Apple's revenues in Greater China dipped to $10.73 billion. According to Quartz, this is the fifth time the company has recorded a negative growth in the region. CEO Tim Cook blamed the disadvantageous exchange rates between the U.S. dollar and the region's currencies.
Further, Cook cites the falling number of tourists to Hong Kong, a shopping hotspot in Asia. This is likely due to disparaging release dates and even price difference. However, the real cause could be is that everyone who wanted an iPhone now has one. This is the same reason a Counterpoint Technology Market Research blamed for the declining sales. Aside from that, there are plenty of users who do not upgrade fast enough or are simply waiting for the next release. In addition, homegrown China brands have been rising in popularity, thereby further hurting Apple's revenues.
Cupertino will have to be wary, then, of these local Chinese smartphone brands. The Silicon Valley's main gizmo still remains at in the top 5, but homegrown phone manufacturers dominate the list. Even Samsung has fallen out of favor with the masses. Now, Huawei, Oppo and Vivo dominate, CNet points out.
The three names have been pushing the iPhone down the rungs since 2016. One in every two phones purchased in China come from one of the top three homegrown names. Although Apple and Samsung still dominate globally, competition is getting tough for the two as Chinese manufacturers are right behind them.