Mobile

iPhone X Hits Brick Wall In Asia

Apple’s iPhone X may be doing well in the U.S., but its price tag of $999 and up might be hurting demand in some of the largest Asian markets.

According to news from The Wall Street Journal, shoppers in Asia, including in India and Indonesia, are choosing Chinese smartphones from the likes of Xiaomi, OPPO and Vivo over the iPhone X. Chinese handset makers are developing high-end smartphones that compete directly with the iPhone X but don’t cost as much. The newspaper pointed out that in both India and Indonesia, the market share of Apple devices has remained flat since 2013. Meanwhile, the market share of Xiaomi, OPPO and Vivo, the three Chinese handset manufacturers, are seeing increases in demand.

The Wall Street Journal stated that in Malaysia, the Philippines, Thailand and Vietnam, Apple hasn’t logged any jumps in market share — and in many cases even lost share during the past few years. OPPO and Vivo, meanwhile, have been seeing their market shares gain in those regions during the same time period. Both Chinese handset makers include selfie cameras and software in the phones, and they are still $100 (or more) cheaper than the least expensive iPhones. IDC told the paper that in India and Indonesia, smartphones on average cost less than $200.

While Asian consumers are going after smartphones made by Chinese manufacturers, largely because they can get feature-rich phones for a cheaper price, the hefty price tag of the iPhone X has actually helped Apple in terms of sales. Revenue jumped 11 percent in the most recent quarter thanks to the price tag. It comes as market share has stayed flat or declined in most Asian-Pacific countries.

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NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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