Why is Apple struggling in China?
China life / August 3, 2017

Apple has again posted strong quarterly earnings, but the one blemish on its stellar results is China. The company’s revenues there slipped 9.5% from a year earlier to slightly more than $8bn (£6.1bn). Apple’s flagship iPhone is losing market share to a slew of local competitors. The company also faces challenges in dealing with China’s strict internet censorship regime. The iPhone is no longer king China is important for Apple because it makes much of its hardware there, and it’s a major market for its products too. Globally, the company posted quarterly revenue of $45.4bn (£34.4bn), fuelled by the sale of 41 million iPhones. Image captionSpoiled for choice? The iPhone has lost market share as customers have shifted to cheaper alternatives. But research firm IDC said that iPhone shipments in China fell 27% year on year in the first quarter of 2017. The problem, it seems, is that local competitors like Oppo, Huawei and Xiaomi are cheaper, and their products have improved dramatically. Although the iPhone had the edge a few years ago, competitors like Huawei’s P10 now represent a comparable product, according to Jake Saunders, an analyst with technology market intelligence company ABI Research. “You can buy a clone…