Apple is struggling to find new iPhone users in China. It appears Chinese lost interest in the Cupertino giant’s smartphone, as fewer consumers search for it, reveals Longbow research. As per the Chinese search engine, Baidu, the search trend for iPhone dipped 48 percent last month. It’s the fifth consecutive month of decline in the search queries.
Baidu search data directly corresponds to the actual smartphone market’s demand. In over last four years, Apple iPhone year-on-year sales correlates upto 74 percent with the Baidu’s search data. Moreover, the data shows 82 percent correlation with iPhone shipments into China. “Multiple iPhone price cuts did not stop China iPhone search trends from weakening further while February supplier sales were abysmal,” Longbow analyst Shawn Harrison said in a note Tuesday.
Apple iPhone lost 5% share in China year-on-year while witnessing 30% decline from January. Although the search isn’t the accurate tool to measure demand but a huge drop is somewhat reasonable. It correctly depicts Apple’s reducing popularity in China.
The situation is alarming as even multiple rate cuts by Chinese retailers haven’t shown any sign of improvement. However, official numbers are not present, and its quarterly reports are scheduled for 30th April. We have to wait for the official figures to know the actual situation of the company in China.
Longbow kept Apple’s rating neutral and expected $11 share price in this fiscal year. “We currently do not see any catalysts near term to drive significant EPS upside,” Harrison said.
Currently, Apple needs to refocus on its plans in China. Otherwise, it would be difficult to get any boost in sales by 2019. Users are moving towards newer smartphones such as Galaxy S10.
Apple is scheduled to announce new TV and subscription news service at an event on 25th March.
(Via)
