China smartphone market to continue decreasing in Q1

China smartphone market to continue decreasing in Q1

China smartphone market to continue decreasing in Q1

The sales shortfall was reflected late last month in Apple's first-quarter earnings report.

China's smartphone shipments are forecast to continue to fall over 10 percent year-on-year to below 80 million in Q1 following an around 20 percent decline in Q4 2018, according to Digitimes Research.

The California-based firm commanded just a 9.1 percent of the Chinese smartphone sector previous year, placing it fifth among all makers, Beijing News reported today, citing a publication from market researcher IDC.

During the period, the USA tech titan reported revenue of $84.3 billion, which represented a 5% total decline - and a 15% decline in iPhone revenue - year-over-year. A slowing economy, lengthening replacement times and the iPhone's hefty price tag contributed to the US giant's decline in China, IDC said.

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In brief: Considering Apple no longer shares sales figures for its iPhone, reports like these are perhaps the most accurate indicator we have of market performance.

In early January, Apple CEO Tim Cook warned the deceleration in China would undercut sales, leading to the company's first revenue outlook cut in nearly two decades.

In fact, sales of Apple handsets fell twice as fast as the rest of the smartphone market as a whole.

Apple said its services division, which includes iCloud, the App Store and Apple Pay, saw revenue advance to $10.9 billion, up 19 percent over the prior year. Both companies have seen a slump in shipments in China, and have been the worst performing among top five smartphone makers.

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Fifth-ranked Xiaomi, a Chinese name that experienced rapid growth just before its 2018 initial public offering, incurred a 34.9 per cent plunge in shipments due to inventory corrections and an internal restructuring, IDC said.

Apple missed its own revenue target during the quarter by about $7 billion, and attributed the miss to slow demand in China.

Lei Jun, Xiaomi's billionaire co-founder, is among those who expect the advent of 5G to energise demand.

IDC said the market outlook for this year is not optimistic, and that competition for customers will be severe.

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