UBS Says iPhone 7 Sales Slowed By Chinese Competitors

Jinjin Wang of UBS has remarked that competitor devices in China, from the manufacturers Huawei, OPPO, Vivo and Xiaomi, which offer comparable features and quality, are making a dent in iPhone 7 sales. This perspective is in contrast to earlier analysts’ opinions that saw momentum in iPhone 7 sales.

Jinjin Wang of UBS found that competitor devices in China, with comparable quality and functionality, are denting Apple’s iPhone 7 sales. Competitor manufacturers include Huawei, OPPO, Vivo and Xiaomi.

After Samsung and Apple, Huawei had the third-largest market share for smartphones, according to IDC, for Q2 2016. Premium devices include the P9 and Mate 8 devices. Huawei’s mid-range and high-end phones accounted for around 50 percent of its smartphone shipments in the second quarter of 2016. The average price of Huawei devices has been steadily increasing both year on year and quarter on quarter. OPPO, which has the fourth-largest market share at 6.6 percent, has its strongest sales in China. The firm is an aggressive marketer, and its R9 and A31 were its top models in Q2 2016. Vivo has the fifth-largest market share, is also strong in China and the X6 is its top-selling model. Also an aggressive marketer, Vivo has a strong brand presence.

Wang’s comments on the dampening effect of competitors on iPhone sales conflicts with other analysts who have reported increasing momentum in iPhone 7 sales. Commenting on the abrupt stop to sales of Samsung Electronics’ Galaxy Note 7 replacement devices, prompted after the replacement models were reportedly catching fire also, Drexel Hamilton Analyst Brian White predicted a boost of 8 million in iPhone sales in 2016. White also forecast additional opportunity for Apple because of the subsequent damage to Samsung’s reputation. White had earlier remarked on the growing momentum for iPhone sales in China.


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