Apple's problem in China may require a new type of iPhone designed specifically for the country, say some former Apple contractors.
Apple has already made a small step in this direction, with the physical double SIM model of iPhone XS / Max being available only in mainland China. It is also widely believed that Apple's decision to offer gold-colored phones is dictated by China and the Middle East. But it is supposed that the company might have to do much more …
China's problem with China
One can not deny the problem facing Apple in China. Apple's sales fell 27 percent in the quarter and are responsible for the cautionary statement that encourages a 30 percent drop in the company's stock price. In the letter that gives lower guidelines – confirmed in the next revenue report – Chief Executive Tim Cook specifically identified China as a problem.
Cook also points out that China is a painful point for Apple's first-quarter results [saying] that China's revenue "over 100% of world revenue decline compared to last year."
Part of this is the Chinese economy. Sales of smartphones generally dropped somewhere in the range of 12-15.5%. Apple's fall, however, is sharper.
Apple also deals with pricing to a certain extent, promising to absorb price increases caused by currency fluctuations in key overseas markets, and perhaps China will be on the list.
But WSJ cites Apple's former contractors, who suggest that it will not be enough.
Some former employees and analysts suggest a more radical change. markets approaching products and aggressively pushing to differentiate their gadgets and software in China from their suggestions elsewhere […]
Over the years, the company "Designed by Apple in California.Gathered in China." Ethos meant that the staff at China can not always provide an iPhone that fits well in local applications and consumer habits.
"They do not adapt quickly enough," says Carl Smith, former Apple CEO in Asia, who is already a strategic sales consultant. "These applications and systems are the way people communicate in China and if you do not have a seamless integration, Chinese manufacturers have an advantage" […]
"We would say," This is what my consumer wants, "said Veronika Wu, who works in sales for Apple in China, before becoming a capitalist in Hone Capital, but Apple's product managers were "a black box," she said, and the phones that were later revealed did not have any particular characteristics in China
. the company's slow response to local brands such as Xiaomi and Huawei, more than 90% of smartphones the ones sold in China have two physical SIM cards, but Apple has been required to do something that local contractors have been asking for years
Supporting QR code is another example, they are visible everywhere from the popular WeChat mobile wallet platform, but the iPhone camera app did not add any QR code support until last year, which is likely to be the result of Apple assigning its first performer with a specific responsibility for Apple to offer the right features for Chinese market.
Others, however, are advising to deal with the Apple issue in China carefully. brand with cache, you do not want to do anything to reduce it, "says Richard Cramer, an analyst who tracks Apple for Arete Research. "Apple can not afford to replace local tastes with the huge bonuses it receives."
It has been recently suggested that changes in WeChat can have serious consequences for Apple. Ben Geskin