Why is Apple losing ground in China and Japan?

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Apple Faces Declining Market Share in China and Japan Due to Intense Competition and Limited iPhone SE Impact

Apple's iOS operating system is experiencing year-over-year declines in urban China, diverging from growth seen in the US and EU5 markets. This downturn is attributed to significant competitive pressures from domestic smartphone manufacturers and the limited impact of the iPhone SE in the region. While the iPhone 6s and 6s Plus remain popular, the market landscape in China has become increasingly challenging.
Intensified Competition from Chinese Manufacturers

In China, Apple is facing increased competition from a range of domestic brands that are offering compelling alternatives to iPhones. Specifically, Huawei's Mate 8 and P9, Xiaomi's RedMi Note 3 and Mi 5, and Oppo's R7 models have intensified the market landscape. These devices, likely offering competitive features at various price points, are contributing to a more crowded and challenging environment for Apple's iOS.
Limited Impact of iPhone SE in China

The iPhone SE, despite its positive reception in other markets like Europe, did not achieve its expected impact in China during the last quarter. Sales of the model were reportedly restricted, and it accounted for only 2.5 per cent of overall smartphone sales in the second quarter. This limited contribution meant the iPhone SE was unable to offset the broader declines in iOS market share within urban China.
Broader Market Dynamics Beyond Specific Models

While the reference content highlights specific competitive pressures and the performance of the iPhone SE in China, it does not provide further details on broader market dynamics or consumer preferences that might be influencing Apple's performance in either China or Japan. The information focuses on the competitive landscape and the impact of particular device sales.

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Why is Apple losing ground in China and Japan?

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