Categories: Technology

Apple boosts sales performance in China with price drops

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Apple implemented price drops across its lineups in China. The Chinese market is forecasted to be the first market to regain normal performance in total smartphones sales.

Smartphone companies are tempering their initial sales forecasts for 2020. The strong projection for the year was brought about by the advent of 5G. It excited most companies and tech reviewers because consumers will finally receive the next biggest leap forward in smartphone technology.

Unfortunately, the excitement has to be kept in bay because of the Coronavirus pandemic. The strong start expected by most companies has turned sour as people around the world have been told to stay home.

Experts say that the effects of this drop in sales may be felt in several succeeding sales cycles. Given this tough situation, smartphone companies are adjusting their strategies moving forward.

Apple takes advantage of China returning back to normal

China accounts for 15% of total global sales for the Cupertino-based company. Sales for the company experienced some setbacks because of emerging competitors from the past few years. Nevertheless, Apple still enjoys a hefty slice of the market share.

In order to keep this market share intact, Apple has green lighted price reduction across all retail stores. Online stores have placed as much as 18% discount on Apple’s older devices.

The price reduction and the new budget iPhone SE will buoy the company’s sales from hard-hitting decline for the rest of the year. Consumer confidence is at a very low point, and extra income and budget is thin for new devices.

Several analysts are saying that Apple’s strategy is perfect for this level consumer confidence. Apple may still attract new buyers to their ecosystem even though the average per capita income this year will be relatively lower than usual.

Apple will maintain strong position this 2020

Apple has come out strongly from the pandemic lock down unlike its Asian competitors. iPhone sales from the previous month leaped 21% higher compared to the same period last year.

This means that the total China sales of Apple for the first quarter slips only by a mere percentage point. The remaining 2020 sales outlook of the company will hang in the balance depending on the total consumer landscape.

Apple has still yet to introduce its 5G capable phone, but its competitors have already gone to market. Analysts perceive that the total 5G sales won’t be as high as expected. Consumers, according to them, will be hesitant to spend extra on a new device just for the sake of upgrading.

Image courtesy of Youssef Sarhan/ Unsplash and Tyler Lastovich/ Unsplash

Steven Hung

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Steven Hung

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