January30,2019

Apple seems to have lost its competition in China market when the holiday sales did not present well. During the 2018 holiday season, the revenue was $13.2 billion; however, the revenue was $18 billion during the 2017 holiday season.  

Numbers showed that the revenue declined around $5 billion in the China market. The two market, Europe and Japan, also decreased by $1 billion annually. 

Flagging economy was the major reason to cause the global revenue decline. The 

intensive trade war was the minor reason to cause some companies to have negative sales performances. CEO of Apple, Tim Cook, also criticized U.S. President Trump for trade war and for deceleration of the economy.  

According to the Neil Mawston, the analyst at Strategy Analytics, Apple was confronted with several issues to influence its sales, such as the high price in the retail, the intensive competitors like Huawei, and the change of the battery causing the longer contract. 

Consumers in China now tend to purchase less expensive smartphones to replace iPhone. Huawei and Xiaomi are major brands for consumers in China. In addition to the consideration of pricing, Huawei, Xiaomi, Oppo will design certain specific models to meet the request of consumers. For example, they will design the specific model for the high-resolution smartphone. 

Even though the sales of iPhone declined in China, the service sales of Apple increased, such as movie streaming services, and in-the work TV.