Apple down, domestic machines up

Have you noticed, Apple is getting more and more “earthy”.

Apple down, domestic machines up

On May 29, Apple’s official Tmall flagship store announced that it will participate in the “6-18” promotion in the Chinese market, with the iPhone 12 reduced to 5269 yuan. Not only that, the iPhone purchased on Tmall is the same service as the official online purchase, support after-sales, and also enjoy 12 interest-free periods.

It is worth noting that this is the first significant price reduction since the public launch in October last year. If you look at the price point of 5G phones at 5,000 yuan, this is almost equivalent to the price of domestic phones.

In the impression of many consumers, Apple cell phones seem to be the most valuable. But from the price of Apple’s participation in the “6-18” this year, everything seems to be no longer so. Apple, to the field “meat” domestic machine?

Apple down

“If you give me another chance, I may not choose the iPhone.”

Belly (a pseudonym) is a loyal fan of Apple products, from the iPhone 6 onwards continued to pay attention to Apple’s products.

“Especially in their own school days, compared to a host of domestic Android phones, buy Apple’s always a sense of superiority. At that time, a game, everyone’s system is not the same not interoperable, it feels like they have a double face.”

However, belly feeling, in recent years the product experience is getting worse and worse, and even do not feel the advantages compared with other domestic machines.

“Take my own just bought the iPhone 12, first of all, the price is not cheap, more than 6000 yuan a 64G memory. The result is a good guy, just to six months, people told me in the online ‘6-18’ promotion less than 5,000 yuan to take, which depreciated too quickly.”

And, belly said, his iPhone 12 product use experience is very poor, “signal is not good, but also drop electrode fast, sometimes, casually play a game will be stuck with PPT, really have a kind of money to find the feeling of crime”.

“So this year’s ‘6-18’ even if Apple gives such a big discount, I am persuading my friends around me, there is really no need to buy.”

Survey data from a third-party agency shows that in the first quarter of 2021 5G smartphone main models in the value retention rate ranking, iPhone series models have been lower than domestic cell phones Huawei and Xiaomi. Among them, Huawei mate40 Pro has a retention rate of more than 90%, Xiaomi 11 has a retention rate of 87.5%, while the iPhone 12 Pro, which has the highest retention rate in the iPhone series, is 85.9%.

Technology industry analyst Chen Che said: “It is worth noting that this data is still the statistics of the first quarter of this year. If we take into account the ‘6-18’ promotion in the middle of the year, this means that the warranty rate of the iPhone 12 series will become even lower.”

Take the iPhone 12 for example, seven months after its launch, the price has fallen from 6,299 yuan to 5,269 yuan, it is already difficult to imagine that this is the original Apple phone positioned as a light luxury product.

Since 2019, Angela Ahrendts, the senior vice president who had been in charge of Apple’s retail business, announced her departure, basically announcing the failure of Apple’s previous attempts to go for a light luxury goods strategy. By the time 2020 rolls around, Apple will have launched what it calls the “cheapest” series of iPhone 11 models in its history.

The Chinese market, one of Apple’s most important sources of revenue, also appears to be somewhat “special” in terms of sales strategy. Compared with Steve Jobs, Cook seems to be “more grounded”. This is the second year in a row that Apple has participated in the domestic “6-18” promotion. In fact, the first time Apple participated last year, it caused a lot of controversy.

“Last year, Apple began to participate in the ‘6-18’ activities, in fact, there are many dimensions to explain. The most important point is that, after just giving up the brand strategy of light luxury products, the lack of 5G technology plus the rampant epidemic caused Apple to choose to take the road of thin profit and more sales.” Chen Che analyzed it this way.

In his opinion, Apple’s sales strategy is becoming more and more “downward”. “From Apple’s pricing model today, prices are gradually decreasing. Not to mention last year’s iPhone 11, this year’s iPhone 12 alone is also cheaper than the iPhone X and other models a few years ago.”

Also take the Chinese market as an example, the earliest time, the iPhone debut market is not China, even to 2 months later than other countries and regions.

Semiconductor industry investors Xin Qi (a pseudonym) said that such a market strategy has advantages and disadvantages, the advantage is that with the relatively low-priced domestic cell phones, the competitive advantage is stronger, the disadvantage is that to a certain extent damage their original product tone.

But for Apple, perhaps not so much.

Third-party research agency Strategy Analytics announced the first quarter of 2021 global 5G smartphone shipments data show that Apple shipped 40.4 million units in the first quarter, up 100% year-on-year, occupying 30.2% of the market share.

And Apple’s latest quarterly earnings data showed that revenue in Greater China in the second fiscal quarter reached $17.728 billion, compared with $9.455 billion in the same period last year, an increase of 87% year-on-year. And according to data released by Apple, iPhone revenue accounted for 53.5 percent of Apple’s overall business, potentially illustrating the huge contribution of the iPhone 12 series.

“A key point that must be mentioned is that Huawei fell out of the top five shipments in the first quarter this time, mainly because of the sanctions on the U.S. side. In this case, Apple lowered the price of its own products, naturally conducive to seize the market.”

But for domestic machines, it’s a different situation.

Apple down, domestic machines up

Domestic machine up

The reality is that domestic machines are becoming more and more expensive.

“Although I always spit on Apple machines, the urge to switch to a domestic machine is not great, because this thing is really getting more and more expensive.” Belly said so.

Once the impression of one or two thousand dollars of domestic machines, is gradually changing this “stereotype”, especially since this year the new launch of 5G domestic phones. Huawei P40 from 4188 yuan, P40 Pro 5988 yuan; Xiaomi 10 from 3999 yuan, Xiaomi 10 Pro 4999 yuan; OPPO Find X2 from 5499 yuan, Find X2 Pro 6999 yuan. From the point of view of the pricing of domestic cell phones today, the price point has basically been above 4,000 yuan.

Data from third-party agency Counterpoint Research shows that in addition to Latin America, North America, Europe, Africa, China and other cell phone average price are showing an upward trend, of which the highest increase is the Chinese market, the rate of increase of 13%, ranking first in the world.

According to the foreign media Techinsights on the Xiaomi 10 phone disassembly, the estimated Xiaomi 10 12 + 256GB version of the comprehensive cost of $ 440, about 3,089 yuan. The cost of the Qualcomm Snapdragon 865 chip is estimated at $125, which means that the cost of the chip alone is already more than a quarter of the cost of the entire phone.

If you consider the additional costs of other aspects of a phone’s sales, such as sales and labor, the price of 4,699 yuan seems to be conscientious.

“So from this point of view, the domestic cell phone price increase is part of a very important reason is the climbing cost of its own hardware, such as the chip piece, especially by the U.S. upstream companies technology and other aspects of control, pricing power is not in our own hands, the lack of autonomy.” Xin Qi said so.

There are also third-party institutions analysis, for the 5nm process of the processor of the phone, the cost of the chip price at least in about $ 238, and even have to have $ 108 design costs, etc., the final selling price reached $ 426, about 2,900 yuan.

According to this prediction, such a phone selling price finally more than 5000 yuan, are a natural thing.

Chen Che said, “The more critical reason is that the gap between domestic cell phones and Apple phones in the technical level is getting smaller and smaller, and in Apple continues to encroach on the domestic market share, domestic cell phone manufacturers may go to a high premium strategy to have a way to live.”

At the end of April, Huawei consumer business CEO Yu Chengdong had forwarded an article titled “Down Huawei, full Apple” on social media, explaining that the high-end of Huawei’s domestic market for cell phones and tablets had been given to Apple, and the mid-range and low-end had been given to OPPO, Vivo and Xiaomi, etc.

“When the mid- and low-end market has gradually saturated, the domestic smartphone price increase has naturally become a matter of course.” Chen Che said.

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