Just a few more hours to go for the biggest release of this year we’ve all been waiting for – iPhone 7. The upcoming model is touted as one of the biggest growth engines for Apple Inc. this year. The iOS behemoth seems quite excited to launch its championing smartphone of 2016. In fact, Apple is eyeing to bounce back as the leader in smartphone market following the big shot iPhone 7 release. At present, Samsung Electronics is ruling the smartphone economy with its back-to-back successful releases of premium models.
Apple’s anxiety is understandable considering the slow year it’s currently facing. There are no major overhauls in the design department, but still, the rumors trending around the internet have kept aficionados hooked up. If the rumors are true, Apple will certainly bounce back as the leader with its championing model. At least there’s a chance. However, the recent condition in China makes us re-think our analysis.
Apple’s Souring Romance with China
China already raised millions of eyebrows by troubling Apple this year. The romance between Apple and China travels a long way back. Apple CEO Tim Cook is the regular visitor of the country. In fact, just a few months ago, the good CEO invested a US$1 billion in China’s ride-sharing giant Didi Chuxing. But Apple and China are no longer on good terms. This year has been tough for Apple in the dragon’s country and it seems it’s about to get worse.
The lack of iPhone 7 buzz in China might arrive as a worry for investors, shareholders, and the company itself. China used to be Apple’s second largest source of the revenue generator. However, Europe has recently occupied the second position pushing China at the third rank. This was not enough; the local Chinese smartphone manufacturers pushed Apple to a lower rank this year. Brands like Xiaomi, Huawei, and Oppo arrived at the top in the country. 26 percent of iPhone sales decline in China pushed Apple to lose its lion’s share. Moreover, Apple lost $60 billion worth market cap after disappointing iPhone 6S sales.
Apple was looking forward to taking a leap ahead following its iPhone 7 release, but now it seems a little difficult. The iPhone 7 buzz in China does not even cross the satisfactory line. The low online buzz is underlining the new challenge for Apple, i.e. to revive its sales popularity in China. The slow economy of the country has slammed the brakes on Apple’s product. If you’re wondering whether the lack of buzz will affect iPhone 7’s global sales, the answer is yes. Although the sales depend on the reception of the new model across the world, but China is one of the golden geese for Apple, so it will.
The Reason behind the Lack of iPhone 7 Buzz in China
Apple is holding the iPhone 7 launch event today. While everyone is excited, Chinese consumers, on the negative side, are not showing the same enthusiasm this year. According to Reuters, half a dozen Chinese consumers are planning for a price drop and review to buy the latest iPhone model. Blame it on the Apple’s decision of introducing no major design changes this year. Moreover, the iPhone 7 has the potential to become the victim of iPhone 6’s success. Let’s not forget to add the failure of recently launched models in the potential list of reasons for iPhone 7’s failure, too.
iPhone 6 sales in China soared higher as soon as the model was launched. This tremendous growth helped Apple to drive revenues in China up by 71 percent. Now, a year later, the slow sales of 6S models have contributed to Apple’s biggest revenue decline in 13 years. Also, the huge stir in the buzz of iPhone 8 model has dampened the excitement of Chinese customers for iPhone 7. Although this may be true for China, but globally iPhone 6S was declared as the highest-selling smartphone.
This is just the article generated by combining predictions from analysts. We need to wait until the upcoming iPhone 7 releases to make a sure prediction.