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The second-hand trend adds to challenges Apple faces in the world’s biggest smartphone market, where it has long been losing ground to domestic makers of high-end yet lower-priced handsets such as market leader Huawei Technologies Co Ltd [HWT.UL] letter p cufflinks. The first iPhones in China in 2009 brought Apple record profit. But the launch last year of its most expensive handset ever – priced 9,599 yuan ($1,397) – coincided with economic downturn and a slowing smartphone market, while deteriorating Sino-U.S. trade relations stoked support for local rivals..
Poor iPhone sales in China prompted Apple on Wednesday to lower its quarterly revenue forecast for the first time in over a decade, hammering its shares and those of its suppliers letter p cufflinks. Chief Executive Tim Cook blamed the trade war and the economy. “We did not foresee the magnitude of the economic deceleration, particularly in Greater China,” said Cook. Several leading Chinese technology companies also lowered forecasts in the past year, including e-commerce firm Alibaba Group Holding Ltd and search engine provider Baidu Inc, with both citing the impact of the trade war..
Meanwhile consumer confidence has tumbled since the middle of last year, with its impact rippling through the economy, from overall retail numbers to box office receipts and car sales letter p cufflinks. As confidence falls and the economy continues to slow, analysts said the market for used smartphones can only expand. China’s iiMedia Research forecast 144 million users of second-hand smartphones in 2019, up a third versus last year. “The macro environment is just not in Apple’s favor,” said Singapore-based IDC senior research manager Kiranjeet Kaur. “People’s spending power is coming down.”..
In west Beijing’s tech district, one worker surnamed Zhou at a phone refurbishing firm said she had seen a rise in users looking to upgrade old iPhones instead of purchasing new ones. “Quite a few people choose to continue using their older iPhones by changing the battery and updating to iOS 12,” agreed one user on Weibo, referring to Apple’s latest operating system. On Thursday, popular threads on microblog site Weibo largely blamed the price for a drop in sales of what was once a must-have status symbol, with some comments taking on a patriotic bent letter p cufflinks.
“Only fools buy expensive iPhones. Sane people buy top quality, cheap Huawei,” wrote one user in a comment ‘liked’ several hundred times. “Support Chinese brands!”. Support for local smartphone brands gained momentum in the past year as the U.S. imposed import tariffs on Chinese goods letter p cufflinks. Netizens responded by calling for a boycott of Apple – a company widely regarded as being representative of the United States. Apple started 2018 with a market share of 15 percent but that had fallen to roughly 9 percent by July-September, showed data from Counterpoint Research. Huawei, whose high-end phone retails at 70 percent of the price of fifth-ranked Apple, saw its share rise to 23 percent from 20 percent..