Kuo: Apple Has Opportunity With iPhone XR in China as Chinese Rivals Face ‘Lower Than Expected’ Demand

In a analysis be aware acquired via appzz.website, Apple analyst Ming-Chi Kuo mentioned cumulative smartphone shipments from four primary manufacturers at the Chinese marketplace, together with Huawei, Oppo, Vivo, and Xiaomi, declined 10 % on a year-over-year foundation throughout China’s Golden Week, a countrywide vacation and primary gross sales length.


Kuo, writing on behalf of study company TF International Securities, mentioned the estimated 6.5-7 million shipments throughout Golden Week had been “less than anticipated.” He known as Huawei the “primary winner” as the one model with a year-over-year building up in shipments throughout the October 1-7 vacation.

The well known analyst attributed the year-over-year decline to a loss of leading edge promoting issues amongst Chinese-brand smartphones. Kuo is sure at the traits of triple-lens cameras and fingerprint sensors underneath the show in smartphones, however mentioned simplest restricted fashions recently reinforce each purposes.

Kuo additionally cautioned that the US-China industry conflict “could also be affecting shopper self belief, which makes the alternative cycle longer.”

A 3rd reason why is that some shoppers—specifically present iPhone house owners—will go for extra inexpensive legacy iPhone fashions or watch for the iPhone XR, in step with Kuo, who expects alternative calls for for the iPhone XR in China might be higher than final yr’s call for for the iPhone 8 and iPhone 8 Plus.

Extrapolating from Golden Week, Kuo mentioned smartphone shipments in China in 2018 as a complete could also be “less than anticipated.” He estimates shipments would possibly decline 10-15 % to 410 million gadgets on a year-over-year foundation.

Chinese manufacturers need to depend on out of the country markets for additional expansion, in step with the analysis be aware, shared with traders Thursday. Kuo stays assured about Huawei’s long run cargo momentum for the reason that model has “the most efficient competitiveness amongst Chinese manufacturers in out of the country markets,” the be aware mentioned.

As for Apple, the iPhone XR represents a possibility for the corporate to extend its marketplace proportion and earnings in the Greater China area, the place it has confronted expanding pageant from the likes of Huawei, Oppo, Vivo, and Xiaomi.

With a decrease beginning worth of $749 in the United States, the iPhone XR lacks probably the most bells and whistles of the flagship iPhone XS and iPhone XS Max, together with an OLED show and glass rear casing, nevertheless it has many similar tech specifications and longer battery lifestyles than either one of the costlier fashions.

iPhone XR pre-orders start Friday, October 19 in greater than 50 international locations, adopted via in-store availability on Friday, October 26.

Related Roundup: iPhone XR
Buyer’s Guide: iPhone XR (Caution)

Discuss this text in our boards