Apple has projected a slowdown in its sales for the present quarter.
Apple (AAPL) faces stiff competition from across the globe. However, the sales and net income of the company has fallen most in China. Apple has cited the slow growth in the economy as the chief reason for the fall in sales in China. It has lost 27 percent revenue in China last month.
However, Apple sales have been falling in Europe too. Recently, the revenue in the last quarter has fallen by almost 3.5 percent in Europe with a decline in 24 percent of total revenue.
The aggressive marketing by Huawei had made it the chief contender to Apple. Huawei has been able to increase its market share from 11.8 percent to 16.8 percent between the period December 2017 and December 2018. Huawei has been able to penetrate the market by capturing the audience with its new smartphones and by launching 5G devices.
But of late, Huwawei has fallen in deep trouble. The company is facing intense scrutiny at all levels in China and the European Union too. This will definitely affect its brand image in the European Union and the U.S.
Given this circumstance, Apple has the golden opportunity to seize the markets again in Europe. Europe has been contributing to about 24 percent of Apple’s total revenue. Once Apple concentrates on the European region, it can get back its lost market share.
Apple has a big brand image attached to its products and has to make use of the current scenario.
Data from IDC research firm shows that the high cost of Apple’s iPhone is the chief reason for its fall. Shipments have fallen by 19.9 percent in China for the fourth quarter of 2018. But for the same period, Huawei has an increased shipment by 23.3 percent. Even local players like Vivo and Oppo have found an increase in shipments.