Apple Trails Huawei Among Chinese Phone Buyers

October 2, 2017 by Paul Ausick

Less than 25% of Chinese consumers who plan to purchase a new smartphone would buy an Apple Inc. (NASDAQ: AAPL) iPhone. More than 30% say their top choice is Huawei.

The data were reported Sunday by the Financial Times, based on a survey of 1,000 Chinese consumers conducted by an investment research group owned by the paper.

According to the Financial Times survey, “In China, Apple’s new models as a whole are underperforming previous launches.”

The percentage of Chinese consumers who plan to buy a new iPhone 8, 8 Plus or X dropped to 65.1% among those who plan to buy a new iPhone. Last year 75.7% said they planned to purchase a new iPhone 7 or 7 Plus following the new product launches.

Price is significant factor, according to the report:

Apple’s decline in relative popularity in China is partly because market growth is becoming concentrated in mid-range phones that cost Rmb2,000-Rmb2,999 ($300-$450) rather than the more expensive end where Apple aims its models, according to FTCR data on consumer budgets. Costing Rmb8388 (about $1,263) in China, the iPhone X is Apple’s priciest handset yet.

The delayed launch of the iPhone X also plays a role. Taiwan-based investment firm Yuanta estimates that Apple will ship 49 million iPhone 8 and 8 Plus units this year, sharply lower than the 80 million iPhone 7 and 7 Plus units launched a year ago.

Apple stock traded up about 0.2% Monday morning, at $154.42 in a 52-week range of $104.08 to $164.94. The stock’s 12-month consensus price target is $173.15.

Essential Tips for Investing: Sponsored

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.