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.
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.
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.
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.
Joshua is a writer at MobileAppDaily and also works as a reporter for the team to keep our readers up to date. He is breaking the mobile app technology news for MobileAppDialy since 2016 and has more than 4 years of experience as a tech blogger.