Moscow, September 19 — “News. Economy” is Apple lost its position in the top ranking of brands who prefer Chinese users. Experts attribute this to the ongoing trade war between the US and China.
The company has dropped from 11th to 24th place in the annual ranking of the leading brands in China, according to Bloomberg, citing data from the report, consulting firm Prophet. In 2017, before the beginning of trade wars, Apple ranked fifth in this ranking. Meanwhile, the biggest local rival of Apple, Huawei Technologies Co., went up two places and took second, losing only to the Chinese payment system Alipay.
The study, which involved residents of major Chinese cities, experts estimate the 258 brands in 27 categories. Took part in the poll of 13,500 Chinese. Respondents evaluated brands they used or planned to use, assess their relevance to the lives of consumers on the basis of such qualities as innovativeness, usefulness and reliability.
The results showed that Chinese consumers have become colder attitude to some American brands.
According to Jay Milliken, and senior partner of Prophet, in Hong Kong, since the administration of the trump forbade American companies to cooperate with Huawei, consumers from China have begun to actively support the domestic producers.
Chinese buyers took what happened with Huawei, as an act of aggression by the US and the result of Patriotic sentiment was the driver of the popularity of Chinese brands. For example, sportswear manufacturer Li Ning Co. for the first time entered the top 40, finishing in 34th place, just two places behind market leader Nike Inc.
In the top ten in this year there were only two brands of US — Android and Intel, took third and ninth place respectively. Milliken emphasized that, unlike Apple, this company does not need to worry that the Chinese will turn away from them. “Some Western brands are so inseparable from the life of Chinese consumers, almost predisposed to not lose relevance. Chinese there are no alternatives, so they remain cutting”, — said the source of Bloomberg.
Bloomberg writes that geopolitical tensions are not the only problem for Apple in China, which is considered to be the company’s largest market after the United States. The fact that smartphones from Apple including the new iPhone 11, do not support the format of 5G, the development of which actively engaged the Chinese authorities.
Last month, U.S. President Donald trump called on Apple to leave China. “I can assist such American companies as Apple, a very short time until they do what needs to be done: probably to get away from China,” said trump.
The American leader added that without his help, these corporations would be in big trouble.
Analysts have predicted Apple’s significant damage due to the increase in US import duties. Experts have suggested that the price of Apple products will rise to 20%. However, this didn’t happen — Apple did not increase prices on the new iPhone 11, and, according to analysts, the decision on decreasing rates was made just for China, dominated by gadgets Huawei and Xiaomi.
The largest Chinese online store Tmall has become the only third-party store, which began taking pre-orders for the new iPhone 11 in China, in addition to the official Apple store. According to representatives of the store, even before the official taking pre-orders over 1 million users have reserved one of the 11 models of iPhone, leaving their contact details.
The most popular is the model of the new line — iPhone 11. Booking volume for this unit is 200% more than the amount of pre-orders for last year’s iPhone XR.
The store representatives assure that the popularity of the gadget will not lead to delays of supply, since Apple have taken care of a sufficient number of smartphones by the beginning of sales. Users from Shanghai and Hangzhou the seller promises shipping iPhone 11 within an hour after the start of sales.
Chinese consumers have to pay from 10.5% to 12.5% more for iPhone 11 according to CNBC. The cheapest model starts with 5499 yuan ($777). This premium XR less than last year’s iPhone equivalent of the new iPhone 11, which cost in China is 28% more than in the US.
In the end, Apple was forced to reduce the prices of iPhone in China for this series. But now at the start of cheaper prices on iPhone 11 has attracted interest from Chinese consumers.
The Chinese company Fenqile e-Commerce and authorized Resellers of Apple, told CNBC that out of all the pre-ordered iPhone 11, including Pro and Pro Max 40% reserved 128GB iPhone 11, and 22% ordered 64 GB iPhone 11. This is the cheapest two models of Apple, this means that most pre-orders were made for iPhone 11.
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