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In order to stop the decline, Apple chose to return to China!

  • Writer: CosDream News
    CosDream News
  • May 7, 2024
  • 3 min read

Updated: Jun 5, 2024



Apple has long viewed China as a key market in its global strategy, but has struggled there in recent years.

Despite a series of measures, such as large-scale promotions, Apple has failed to arrest the decline in sales in China.


With innovative technology and localization strategies, local mobile phone brands have continuously taken Apple's share in the high-end market in China.



The main challenges Apple faces in the Chinese market include the continuous erosion of market share by Chinese brands, the rising cost of supply chain relocation, and the lack of local innovation, which has seriously affected its sales performance and brand image in China.


The rise of Chinese brands poses an unprecedented challenge to Apple.

For example, Huawei's Mate 60 series phones are equipped with the self-developed Kirin chip and launched the HarmonyOS operating system, which poses a strong competition for Apple in both hardware and software.


In the field of folding screen mobile phones, Huawei has occupied an absolute advantage, and has won the domestic market share of folding screen mobile phones for four consecutive years.



In addition to Huawei, other domestic brands such as Xiaomi, OPPO, vivo, etc., are also constantly increasing innovation efforts, launching 5G mobile phones and AI mobile phones with obvious cost-effective advantages, attracting a large number of low-end consumers.

According to IDC, Honor and Huawei tied for the dominant position in the Chinese smartphone market in the quarter of 2024, while Apple took a back seat.


Supply chain issues are also a major challenge for Apple in the Chinese market.


Most of Apple's major suppliers, 151 of which manufacture in China, account for 98% of Apple's total purchases. Apple's dependence on the Chinese supply chain is arguably unprecedented.


However, in recent years, affected by the US-China trade war, Apple has been considering transferring its supply chain to India, Vietnam and other places to avoid risks, but this transfer is bound to lead to a significant increase in costs.

Apple's lack of real local innovation in the Chinese market is also a prominent shortcoming.


Although Apple has launched some localized services in China, in terms of hardware products, Apple is still not really close to the needs of Chinese consumers.


In innovative areas such as AI and folding screens, Apple lags behind domestic brands, which has largely affected its competitiveness in the high-end market.


In the face of fierce competition from domestic brands, Apple urgently needs to rebuild its brand image in China, increase localization investment and innovation efforts, in order to regain its leading position in the huge Chinese market.


Apple needs to strengthen technical cooperation with China's manufacturing industry to jointly promote innovation and achieve complementary advantages.

For example, in the field of innovation such as chips, operating systems, and folding screens, Apple can learn from the advanced technology of domestic brands and integrate it into its own products.


At the same time, Apple can also provide China's manufacturing industry with advanced process technology and quality management experience to help improve the quality of its products.


Through this mutually beneficial cooperation model, both Apple and China's manufacturing industry will benefit.

Apple also needs to invest more in localization in China to get closer to the needs of Chinese consumers.


At present, Apple's lack of real localized innovation in the Chinese market has greatly affected its competitiveness in the high-end market.


Apple needs to innovate locally at the hardware product level and launch more products that fit the tastes of Chinese consumers.

At the same time, Apple can also increase its research and development investment in China, establish more local research and development centers, and absorb more local talents, so as to better grasp the pulse of the Chinese market.


Apple also needs to step up its marketing and branding efforts in China.


In recent years, domestic brands have successfully attracted a large number of young consumers with their localized marketing strategies.


Apple's brand image in China is a bit old and cold, and it is difficult to resonate with young people.

Therefore, Apple needs to re-examine its brand positioning, launch more marketing activities close to young people, and enhance the affinity of the brand in China.


By reshaping its brand image in China, increasing investment in localization and innovation, Apple is expected to regain its leading position in the Chinese market.

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