© mindea/Shutterstock.com
Google, Samsung, Xiaomi, Huawei, so many manufacturers that share one thing in common. They all work with the same operating system, Android. Another similarity is that they are experiencing some growth in emerging countries.
This is very important news, when you consider that the other major markets for smartphone manufacturers (the United States, Europe and China) have seen their demand plummet since the end of the pandemic. So in this last market, where some people are still buying their “first smartphone” for life, competition is tough.
In developing countries, where money is scarce, manufacturers are engaging in a real price war, even if it means offering products for a few dozen dollars. Faced with such adversity, Apple is unable to assert itself. Worse still, the Apple brand is declining in this region of the world.
Android takes the lead
In detail, the IDC consultancy firm has just released its annual report on consumer trends across the world in 2024. On a global scale, Android smartphones have seen a 7% increase in sales, compared to a stagnation of +0.6% for iOS devices.
Results that can be explained by several setbacks for Apple. The brand with the apple is facing a patriotic surge in China, pushing Huawei and Xiaomi smartphones to the forefront. In Indonesia, the 4th most populous country on the planet, Apple has been rubbing shoulders with local authorities all year, to the point that the iPhone 16 is banned from sale in the archipelago.
200% Deposit Bonus up to €3,000 180% First Deposit Bonus up to $20,000The price war is piercing Apple
But where Apple is suffering the most is in markets where it already had a certain hold. Present in Latin America with its iPhones for several years, it is now being overtaken by much cheaper Chinese manufacturers.
According to a report by the Canalys institute, 49% of active smartphones in the region were worth less than $200 when they were purchased. Since Apple is positioned as a high-end brand, the apple simply cannot compete with these low-cost models.
Phones under 100 euros: the new Eldorado
Buying a smartphone for $1,000 is not for everyone. And those who make such an outlay are not going to do it every year. So, to find new buyers, Apple will have to lower its prices. Market studies conducted in recent months are unanimous: only (very) low-cost phones are experiencing double-digit growth.
The specialist firm Omdia is talking about an increase of 87% between 2023 and 2024 for models sold at less than $100.Chinese manufacturers such as Oppo, Realme and Xiaomi are then attacking these markets, both in Latin America and in Africa.
A very aggressive pricing policy which is not without consequences. And for good reason, Xiaomi has halved its profiles in 2024 compared to 2023. The fault lies in margins reduced to the bare minimum to sell a maximum number of devices in these new regions.
📍 To not miss any Presse-citron news, follow us on Google News and WhatsApp.
[ ]