Affected by the rise of domestic mobile phone brands, iOS’s market share in China continues to decline. According to IDC's latest statistics, iOS device market share in the third quarter decreased from 14.4% last year to 12.9% this year. Moreover, since the second fiscal quarter of fiscal year 2016, Apple’s revenue in the Chinese market has declined for five consecutive quarters. Waterloo, the largest market in Asia, suffered a decline in both market share and revenue, making Gao Lengru, like Apple, unable to sit still.
In order to stop this contrarian, Apple has launched a new position in Greater China, announcing the appointment of Ge Yue, vice president of wireless technology as vice president and managing director of Greater China, which is currently the highest position in Greater China and is responsible for leadership. All of Apple's team members in China are at a high level and report directly to CEO Tim Cook and Chief Operating Officer Jeff Williams.
Will sending "Chinese players" lead China's business to solve the problem?
This time Ge Ge was appointed as the top leader of Apple in China and was interpreted by the outside world as a “showcase†to the Chinese market. Many foreign-funded enterprises like this operation and appoint someone who has emotional or “born†links with the market. Marketing promotion, whether it is industry practitioners or consumers, will be more likely to accept close to the "localization" of the team.
According to media reports, Ge Yue was born in Shenyang, Liaoning, and is fluent in Mandarin. Despite her academic qualifications, higher education was completed entirely in the United States. "She holds a bachelor's and master's degree in electrical engineering from Simon Fraser University in British Columbia, and a master's degree in business administration from the University of California, Berkeley," but also in Apple. The work undertaken is basically biased toward technology research and development. However, the current Ge Yue is indeed the most suitable candidate for Apple. On the one hand, he was born in China and familiar with Chinese culture and national conditions. On the other hand, he previously led Apple’s wireless technology software engineering team for nine years and deeply participated in Apple products. The technology research and development also understands Apple's various business segments, and may know more about how to tap the potential of software services in the Chinese market and increase the hardware market share than Americans.
However, is it not so simple to send out a "Chinese player" who may understand the rules better to guard the Chinese market and solve the problem of the decline in Apple's market share and revenue in the Chinese market?
Rising domestic mobile phone and Android market are rivals
Since several years ago, Apple has been unable to ignore the market squeeze effect brought about by the rise of Chinese domestic brands. Since 2012, China’s smartphone shipments have remained at the top of the world and have continued to grow over the next few years. In the Chinese market, domestic brands have dominated most of the market. According to IDC statistics, in the first three months of this year, Huawei, OPPO and Vivo accounted for almost half of the market share of the Chinese smartphone market, while the share of Apple’s original arcade dominating apple fell by 26.7% compared to last year. Last year, OPPO, Huawei, and vivo became the top three shipments in the Chinese smartphone market.
The rise of China-made mobile phones and their application of the Android system has become the rival of Apple and its ios system. Although in the high-end market, Apple still occupies a certain advantage, but as domestic mobile phone brands continue to launch attacks on the mid-to-high end, the advantage gap will continue to shrink. You know, Apple's mobile phone has been criticized by the public for a period of time without innovation, just to make a fuss about increasing the color of mobile phones.
High-end and high-end will be the inevitable trend of the next domestic mobile phone brands. With the increase in the influence of domestic mobile phone brands, more and more consumers believe that domestic brands are no worse than overseas brands. The best proof is that Huawei, its mate and P series mobile phones, have gradually opened up in the high-end market. In the first half of this year, Huawei P10 was successfully released, and Huawei's Mate9 and Jinli 2017 released before were counted. The latest flagship models were all offered at sales prices of RMB 4000-7000. The data also showed that the high-end models in the Chinese market (prices over 4,000 yuan) came from Apple, Samsung, Huawei, Jinli, vivo, glory, 8848, Xiaomi, a total of 8 brands, sales in February reached 2.07 million units. In addition to Apple and Samsung, the rest are domestic brands.
The negative impact of "Apple Tax" will continue
For Apple's brand, the previous compulsory encashment of 30% on the "appreciation" in the iOS app of the Chinese market may be a bit of a rush and the means are too tough. The negative impact of the mandatory 30% toll fee will continue for a long time between consumers and application developers. To regain the good feelings of loss, Apple needs to make more efforts.
For consumers, Apple showed a very hard-line attitude in this incident. It is very easy for people to put it into the role of "mountain". "This road is opened by me. This tree is planted by me. We must go from here and leave us with money." And once consumers combine Apple's behavior with the fact that they are forced to collect “traffic†fees, the negative impression will be difficult to eliminate in one-half. Many people want to abandon Apple’s choice of Android phones in order to allow their favorite public authors or anchors to receive their rewards in full, but not to rob 30% of them directly.
For App developers, Apple's strong attitude also released a signal - my site I call the shots, what must listen to me. Although it is now subject to the closed nature of the iOS system, many app developers have compromised. However, developers are constantly looking for alternative channels. With the growing market share of Android phones and the rise of other high-end mobile phones, Apple's market share will be squeezed even more. In this dual role, the more open and less restrictive Android development environment will attract more developers to join. Once there is a 28 effect, Apple will quickly lose its current advantage.
This may also be the reason why there is recent industry rumors that Apple is considering to allow users to “play rewards†to original authors. It is no longer mandatory to use the “app purchase†mechanism of the Apple App Store and may have to abandon the “Apple Taxâ€. .
In addition to replacing a general manager with a more affinity in the Chinese market, we can see that in iOS 11, Apple has added a lot of new features to the Chinese market, such as QR code scanning, fraud message recognition, and road traffic surveillance cameras. , Pinyin keyboard and Shanghai dialect speech recognition. The "Chinese elements" on these products are also "careful" for the Chinese market. However, these features have been implemented on Android phones, and for users, in fact, it does not have strong appeal. The best way for Apple to reverse the downturn in the Chinese market is to make good products.
Apple needs to recognise that its previous logic of success is to use products to conquer the market rather than to use it to make things happen.
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