Operators and retailers have lowered the price of iPhone XS and iPhone XS Max in China. Previously, as Apple competed for sales in harsh environments, the iPhone XR's price tag also showed a similar decline.
Although not yet confirmed, there are signs that Apple has lowered the wholesale price of the new iPhone to pass the price drop to consumers without reducing dealer profit. Apple has said that there will be some local price changes in currency fluctuations, but the $300 reduction in iPhone XS and iPhone XS Max is much larger than any change in the RMB in the foreign exchange market.
For me, this is a direct response to iPhone sales, which is twice as fast as other manufacturers' equally high-quality smartphones. Yes, the sales environment is full of challenges, but Apple has triggered a bigger crash than its competitors.
Like every market, China has its own unique conditions. The iPhone in 2018 failed successfully in three key areas.
The Chinese market is very concerned about the rapid update of original specifications and new designs. Apple will definitely talk about the capabilities of its A12 bionic chip, but it is not willing to talk about other areas (including the basics of battery capacity and onboard memory). This makes the iPhone a disadvantage in the retail sector.
This is also equivalent to the iPhone's 'S' year - iPhone XR, XS and XS Max are designed to follow the iPhone X design of last year. There is nothing new to be proud of. Buying the 2018 iPhone is buying "last year's model", which is not consistent with China's geekerati.
Finally, Apple's biggest advantage in the United States does not exist in China. The first problem with any mobile phone on the Chinese market is rarely which operating system and which application stores the phone to use if the app will run WeChat. The iPhone will naturally be like this, but every mobile phone is like this. The "lock" provided by iOS (and the iMessage platform) is not a factor in keeping users into the Apple ecosystem.
Like every market, China reflects global trends. Apple will focus on all of China's iPhones to learn as many courses as possible. There is no iOS wall garden to let consumers enter the interior, without the uniqueness of the iMessage platform, and without the power of the brand name, what can the iPhone help it stand out from the competition?
Tim Cook and his team believe that the answer lies in increasing the revenue of software and services, but these services still require a user base. If iPhone sales around the world follow the trend set by China, then the medium to long-term size of the user base is at risk.
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