Apple’s struggles in China are no secret.
Cupertino has been grappling with declining sales in this key smartphone market, where retailers have been forced to offer deep discounts in a bid to move their stocks. So Tim Cook and company decided to reduce the price of the entry-level iPhone 11 to $699 in a bid to attract more users, but the move doesn’t seem to be working as Apple would have anticipated.
Mixed News for the iPhone 11 from China
Reuters reports that the iPhone 11 has met with a lukewarm response in China as “short queues of die-hard fans” showed up on launch day. This is in contrast to earlier iPhone launches when there used to be hundreds of people lining up to buy Apple’s devices.
Of course, the lack of long queues is not a quantifiable measure of iPhone 11 sales in China, especially considering the massive spurt in pre-sales through the online channel. According to Reuters, e-commerce platform JD.com is reporting a 480% increase in demand for the iPhone 11.
That’s an encouraging number, but there is one caveat. Apple launched all three iPhone 11 devices at the same time this year, so the numbers aren’t comparable to last year’s launch when the three iPhones went on sale on different dates.
On the other hand, it won’t be a good idea to assume that demand for the iPhone 11 models is strong just because some distributors are running out of stock. That’s because we don’t know how many models Apple allotted to the Chinese market.
Given that the number of iPhones that Apple will ship in the second half of 2019 is expected to decline slightly year over year,