Despite how dominant Apple is in the tech industry, it is surprising how it can't seem to figure out the further decline of iPhone sales. But the tech giant has been trying to work its way into the market in China. It has been reported recently that Apple's App Store largest revenue comes from China.
This is a boost to Apple's overall revenue. The App Store, Apple Music and Apple Pay sales have increased contrary to the iPhone, iPad and Mac. However, Apple may need to work harder in breaking out in the Chinese market. If they could do that, it will be a huge help in iPhone's case.
Apple's Dilemma In The Chinese Market
China is probably one of the largest markets for any company. A thriving business in China is definitely worth a lot. It's not enough for Apple to be dominant in the US market.
Chinese consumers are willing to spend on the App Store as evident with the recent data by the research firm App Annie. Apple has to capitalize on this with its other products.
Particularly, it could think of a better strategy to convince Chinese consumers to buy iPhones. But that has not been easy for Apple. With such competitions like Xiaomi and Huawei, Apple might end up eventually giving up on its Chinese market.
The Issue With iPhones In China
Apple should have realized that the cost of its iPhones is not helping in China. This is even a bigger issue now since the Chinese economy's growth has become slower. According to Seeking Alpha, Chinese smartphone brands Xiaomi and Huawei offer products that are cheaper. The quality of these smartphones is no push-over.
Naturally, consumers will purchase a more affordable one. At the same time, the product should provide decent performance too. Seeking Alpha explains it best that Apple needs to make an impressive change to its iPhones in a strong competitive market and slowing Chinese economy.
iPhone 7's Fate In China
According to MSN, UBS analyst Steve Milunovich has said that the iPhone 7 sales in China are weaker than the iPhone 6s. He added that strong competitions in the said market may have also hurt the iPhone 7 sales.
For Apple to resolve this issue, the tech company might be left with two options. It can lower the price of its iPhones in China. Or Apple should produce a new iPhone with an exciting innovation that is not present in any other smartphones.