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Retailers and analysts alike agreed that price isn't the only factor hurting the iPhone's position in the Chinese market — customers seem to prefer Chinese brands also because they're more comfortable with some of their features. Apple's share of the Chinese market fell dramatically from 81,2% to 54,6% last year.

Price is understandably the main reason why the iPhone is not doing well in China. The iPhone X was the first model to break the thousand-dollar mark, and it moved Apple from the acceptable $500-$800 category to a completely new position as a luxury brand. Neil Shah from the Counterpoint company said that most Chinese customers are not ready to spend around thirty thousand crowns on a phone.

Traders have seen a large number of customers ditching Apple and switching to smartphones from Chinese brands, while only a small number of people have decided to do the opposite. Although Apple responded to the drop in demand by lowering the price of the iPhone XR, XS and XS Max, price is not the only reason why there is so little interest in iPhones in China.

China is specific in that locals place great emphasis on new features and design of smartphones, and especially in terms of iPhone features, it lags slightly behind local brands. He Fan, the director of Huishoubao, a company specializing in the purchase and sale of used smartphones, mentions the transition of customers from Apple to the Huawei brand - mainly because of the fondness for selfies and the emphasis on camera quality. For example, the Huawei P20 Pro has a rear camera with three lenses, which is why Chinese customers prefer it. Chinese brands Oppo and Vivo are also popular.

Chinese customers also praise local brands for fingerprint sensors under the glass, displays without cutouts and other features that Apple smartphones do not have.

iPhone XS Apple Watch 4 China

Source: Reuters

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