The shipment numbers for the quarter ending December 2018 are out, and things don’t look good for Apple and Xiaomi. Both companies have seen a slump in shipments in China, and have been the worst performing among top five smartphone makers. While China saw a decline of 9.7 percent in smartphone shipments, Apple iPhone shipments dropped nearly 20 percent, IDC report reveals.
According to a post on South China Morning, Apple reported a 19.9 percent decline in shipments, while still managing to climb one place to number 4. However, it was Xiaomi who took a massive hit, tumbling 34.9 percent during the same period. Both analysts and IDC believes that Apple failed to address the problem by pushing prices higher, while ignoring the fact that the Chinese market has been contracting.
Watch: Huawei Mate 20 Pro Review
“The imbalance between the increasingly severe domestic market environment and Apple’s high product unit price has led to the declines of iPhone shipments in Chinese market,” IDC said in a Chinese research report.
Even Nicole Peng, a senior director at Canalys believes that “Apple doesn’t have a good go-to market strategy that fits the rapidly changing Chinese market. It also seemed to be slow in reacting to China’s economic slowdown and changes in consumption structure.
Surprisingly, the dark horse of the race turns out to be Huawei, which registered a gain of 23.3 percent, taking the top spot. The second and third spot has been taken by Oppo and Vivo, showing modest gains of 1.5 percent and 3.1 percent, respectively.
Huawei has also managed to beat Apple and become the number two smartphone maker in the world. Much of the credit can be given to improved quality of its products. The company also seems to be doing a much better job at serving the unique needs of Chinese users than Apple, which does very little when it comes to localizing its offerings.