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.

Tanya (Editor In Chief)
Written By

She is a content marketer and has more than five years of experience in IoT, blockchain, Web, and mobile development. In all these years, she closely followed the app development, and now she writes about the existing and the upcoming mobile app technologies. Her essence is more like a ballet dancer.

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

Android P To Come With Secret Features This Month For The Developers

4 min read  

Google for sure is working on the next Android version which is going to be released later this year. Following its usual pattern, the search giant will give a taste of its new Android sweet in March and expected to introduce its I/0 conference 2018. Google will release the developer preview of the

technology

You Need To Know About September 12th At Apple Park and iPhone 8

4 min read  

September 12th is a special day for Apple, marking the 10th anniversary of iPhone. The first ever event at Steve Jobs Theater in Cupertino, Apple has given us a lot of information and its a lot to take in iPhone 8 though comes with a starting price of $1000, however, includes several cool features i

technology

Smartphone Vs Computer: Which Machine is More Powerful?

4 min read  

Smartphones have changed the world and our life in every aspect. There was a time when for a single task we need to plug in our computers and spend a lot of time to get it done, but now smartphones have changed everything around us.Whether it is social media, news, professional work, and interne

technology

New iPhone X Size, Design, Specifications, Price And Availability

4 min read  

iPhone X is already in the limelight since its launch and people are already anticipating the next iPhone from Apple. Following a report by Strategy Analytics, iPhone X was the world's best-selling smartphone model in the first quarter of 2018. To stay afloat in the fierce competition of smartph