Foreign media reported that Apple will soon release the company’s most important smartphone product, the iPhoneX, for several years, but will face a new wave of domestic companies Huawei in its retreating Chinese market.
In the evening of Beijing time yesterday, Huawei released a new generation of flagship smart phone Mate10 series, hopes to use this series of mobile phone products to consolidate its position as the number one smart phone manufacturer in China, and enhance its image as a high-end smart phone in other markets around the world.
In the past two and a half years, Apple’s market share in China has been continuously snatched away by Huawei and other local manufacturers. Apple hopes its latest flagship smartphone will conquer Chinese consumers and this product will be available for sale next month.
Huawei determined that Mate10 can make consumers excited. This phone offers similar iPhoneX features, such as full-screen OLED display and artificial intelligence features such as image recognition, but the price is cheaper than the iPhoneX.
According to market research firm Counterpoint, in June and July of this year, Huawei has surpassed Apple in terms of sales volume and has become the world’s second-largest smartphone manufacturer. Just during this time, Apple’s sales were in decline due to the imminent release of the iPhoneX. However, the agency believes that it is unlikely that Huawei will secure the position of second place in the global second quarter, because Huawei’s mobile phone sales may decline, and Apple may sell in the second half.
However, Counterpoint stated that Apple’s market share in China has dropped from 14% in 2015 to 10% this year. During the same period, Huawei rose from 14% to 18%.
Yu Chengdong, CEO of Huawei's consumer business, said in an interview: “We Huawei has been the nameless person from five years ago to the current top three in the world.†Today, Yu Chengdong said that Huawei hopes to succeed in the high-end smart phone field.
Huawei held a press conference in Munich, Germany on Monday to launch Mate10. The company said that Mate10's starting price in Europe is 699 euros, while the more high-end Mate10Pro's price will be 799 euros. The price of this phone in China and other markets will be announced later. The price of the iPhoneX in the United States is between $999 and $1,149, while the starting price in China is 8,388 yuan.
After Huawei dominated the telecommunications equipment industry, it began to expand into the smartphone industry several years ago. Huawei's competitors in telecommunications equipment include Ericsson and Nokia.
Yu Chengdong set a goal last year. Huawei will become the world’s largest smartphone manufacturer in the next four to five years. Subsequently, he played down his high-profile plan and said that Huawei is paying more attention to the competition in the high-end smartphone market.
In the long-term high-end smartphone market dominated by Apple, Huawei has made breakthroughs. In the first half of this year, Huawei shipped more than 6 million of its previous-generation flagship model P10. According to another market research organization, Canalys, the average sales price of Huawei's mobile phones has been increasing, and products that sell for over $500 account for a larger share of the total sales.
Apple still holds a leading position in the high-end smart phone market in China, and this is the area where mobile phone manufacturers are most profitable. Counterpoint said that in the first half of this year, Apple occupied 61% of the market share of the high-end smartphone market in China (prices higher than US$400), compared with 16% for Huawei. In the second half of 2015, Apple accounted for a staggering 86%.
However, Apple still faces various pressures. Earlier reports said that the iPhone 8 was cold in China and other markets, and the iPhone X may be seriously out of stock due to capacity reasons. Apple declined to comment.
These bad news coincided with Apple's trouble in China. Apple’s ranking in China’s smartphone market has fallen to fifth, not as high as Huawei and Oppo and vivo. Analysts said that these companies pay more attention to the concerns of local consumers, provide similar technologies but have lower prices, and better integrate Chinese-style online services such as WeChat.
In addition to Huawei, no other Chinese mobile phone manufacturers can pose a serious threat to Apple in the high-end product area. According to Peter Richardson, research director of Counterpoint, Huawei's greatest success lies in its long-standing cooperation with operators around the world, such as Western Europe.
Huawei is still niche in the U.S. market. The company’s communications equipment is actually prohibited in the United States. The United States has always claimed that the prohibition on the use of Huawei's products is for security reasons, but Huawei has expressed these concerns for many years without any basis.
Huawei has always attacked Apple. Last month, Huawei posted a video on Facebook that mocked the iPhone X's face unlocking feature. There was a small surprise when this feature was demonstrated at the Apple conference. The video claims Mate10 is the real artificial smart phone.
Huawei has always claimed that artificial intelligence is the main selling point of its Mate10. The company said that Mate10 uses its own research and development of the chip, the chip contains a neural processing unit, designed to handle artificial intelligence tasks such as image recognition.
According to Huawei, Mate10 artificial intelligence technology can tailor camera settings tailored to the subject, such as light adjustment based on human faces or landscapes.
Richardson said that the iPhone 8 and iPhone X have similar artificial intelligence capabilities. He said: "Huawei and Apple are currently only two smart phone manufacturers that can provide this feature."
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