Battle To Expand In China

After Apple issued profit guidance and cited slowing Chinese demand as the reason for slower-than-expected growth, all eyes are on Tim Cook to drive sales in the country and fight regional competitors Huawei and ZTE.

This week, read all about Apple’s ongoing battle in China, its price-slashing techniques, and the increasing threat of the Chinese government.

AN iPHONE FOR CHINA Alongside the unveiling of the iPhone XS and XS Max back in 2018, Apple introduced the ability to add a second SIM - a virtual SIM card - to the iPhone for the first time. The news was met with praise from technology critics and business professionals, but for the Average Joe, the feature would no doubt never be used.

Unless you live in China, that is. In China and Hong Kong, Apple released legitimate dual-SIM iPhones with two SIM card slots, in an effort to appease consumers who have more than one phone line for family and business. At the time, Apple said it was creating a unique SIM card slot because China was hesitant towards the use of eSIMs, signaling its intentions to expand its presence in the country and work with both the Chinese government and local consumers to create a smartphone that truly served their needs.

However, following the release of the new iPhone lineup, Apple suffered a temporary sales ban in the country, and early predictions showed that the XS and XS Max models failed to live up to expected levels of demand.

CHINA BLAMED FOR WEAKENED SALES

In early January, Apple took the unprecedented step of cutting its sales forecast, with Chief Executive Tim Cook telling the world that iPhone sales in China were to blame. Thanks to the uncertainty around U.S.-China trade relations, Apple argues Chinese consumers are less willing to splash out on expensive new hardware and are instead turning to lower-cost rivals.