Apple's Exclusive Service Reason For Downfall in China - MobileAppDaily
technology

Apple's Exclusive Service is The Reason For its Downfall in China

Apple is facing tough time in the Chinese market and competing against the local rival Tencent

Apple\'s Exclusive Service is The Reason For its Downfall in China

Apple is the most valuable company around the globe and ruling the tech world with its consistent tech breakthrough. The company has consistently beaten the rivals including  Google in terms of revenue. But, the global winner struggles to make a substantial impact in the Chinese market. The local tech giant in China, Tencent has a strong hold in the Chinese market that’s a big issue for the Apple.

Tencent has the two most popular instant messaging apps which dominate the world’s largest consumer market. The Apple is unable to allure the the smartphone users in china and to ditch the Tencent apps. The WeChat and QQ apps own the major contribution in giving the Apple a tough time in China.

Both the apps apart from the messaging service provide a lot more to the users. The apps serves the services like online shopping, detecting the nearby users, online video watching, play games, book a cab or even order food.

{IRP}

Integrating the other apps and services in the platform is the key of the Tencent apps that's what makes it an unbeatable rival. The convenience and open platform for the other apps make the WeChat and QQ to be the first choice of the Chinese users.

Tencent

The financial figures given by the Penguin Intelligence, which is a research firm of the Tencent shows that there were 898 million and 868 million Wechat and QQ users respectively in the last quarter of 2016. While Apple has 1.2 billion active users, but the numbers from the Tencent is enough to show its dominance in the China as the majority of the user are from the local market. On the other side, Apple has seen a continuous downfall in the revenue since last six consecutive quarters and a 10% drop in the last  one.

The things aren't going well for the iPhone maker in China, the share of the apple fell down to 9.6% in 2016 from 13.6% the year before. The retention rate of the Apple users is 80% in America and England, but the story is different in China where it is only 50%. Talking about the sales figures of the apple the company experiences a downfall in the sale by 14% in the first quarter of 2017 in China.

{IRP}

Apple’s unique iOS ecosystem which is the strength of the company and the prominent reason behind its success is not working in the China. The ability of the Wechat to enable the user for using various services at one place is favoured by the Chinese users.

The company considers the Chinese market as potential revenue drawer and knows the importance of taking urgent steps for the growth. According to the CEO Tim Cook, the tech giant is taking the recent fiscal figures seriously in the Chinese market and looking forward to improving its position in the market.

Apple recently made Isabel Ge Mahe the Managing Director and Vice president of the Greater China region as its first steps to fight back with the existing rivals in the region.

For the Latest Tech News and reviews, follow MobileAppDaily on Twitter, Facebook, LinkedIN, Instagram and Flipboard.

MAD Team
Written By

MobileAppDaily host a team of experienced technical writers, industry wizards, and app experts who have an exact knack of content that caters to the needs of the mobile app targeted audience. We strive to bring you the best of tech!

Top Companies

InMobi
Singapore
Dot Com Infoway
New York, USA
M&C Saatchi Mobile
New York City, USA
Techmagnate
New Delhi, India
Fetch
London, UK
View full report

Latest Articles

Join our global community 135K Followers
technology

Xiaomi Unveiled 12nm chipset Powered Redmi 6/6A In China

MAD Team 4 min read  

Running high on the success of Redmi Note 5, Redmi Note 5 Pro, and the Redmi Note 5 Plus, Xiaomi has announced the launch of its latest budget smartphones - Redmi 6 and Redmi 6A. In an event in China, Xiaomi introduced the 12nm chipset Powered devices that promises to consume 48% less power than com

technology

Free WordPress Themes: Advantages & Disadvantages You Should Know

MAD Team 4 min read  

If you are a veteran in the blogging scene you must be aware that there are hundreds of free WordPress themes out there. Potential bloggers and website owners can find the best free themes for their sites. Generally, many WordPress theme developers create free themes only for fun.On the other ha

technology

Apple Let This Masqueraded Crypto Wallet App Slips Into The App Store

MAD Team 4 min read  

Bitcoin has become mainstream nowadays and sudden hike in its price last week brought up many things including the cryptocurrency wallet apps. There is an app that made its way to the Apple’s App Store Charts this weekend and grabs number three spot in the Finance category. Surprisingly the ap

technology

'Parallel Tasks' Coming To Run Android Apps in Background On Chrome OS

MAD Team 4 min read  

Since the day Android applications available for the Chrome OS, the Chrome users have many options but with certain limitations. One of the biggest flaws of using Android applications on a Chrome OS is that they won't work exactly like a computer software. However, the issue is now having the Go