Apple Mobile Phone In China(II)

Apple loses the Chinese Market?

Analysts first blamed the weak Chinese market for Apple’s decline of sales. Katy Huberty of Morgan Stanley, the latest analyst to downgrade Apple’s target share price, wrote in her report that sales of the iPhone were lower than expected, mainly because of the weak smart-phone market in China.3 inch square tubing

Yes, according to IDC data analysis, the smart-phone market in China has been declining since the second quarter of 2017, and has been declining for the sixth consecutive quarter. In the first half of 2018, the smart-phone market in China dropped 11% year on year. However, apart from the decline in domestic mobile phone sales of Samsung, Apple and the third camp China brand, the top five domestic mobile phones are not all down for its data of sales, but all kinds of growth in a certain period of time.

Qualcomm and Apple

Starting in January 2017, Apple in the United States accused Qualcomm of charging too much for its chips and refused to return the $1 billion patent fee it had promised. So in April of the same year, Apple officially announced that it would stop paying Qualcomm patent fees.

As we know, Qualcomm, as a chip giant, has a patent licensing department dedicated to intelligent machine manufacturers, and the most of the profits come from the patent licensing department.

Qualcomm’s patent fee approach has met with global discontent, including from Apple’s mobile phone manufacturers. In 2015, Qualcomm was fined 6 billion yuan by the China Development and Reform Commission. After the rectification of Qualcomm, the patent fee for the sale of mobile phones in China was changed from the patent fee charged for the price of the whole machine to the patent licensing fee charged for 65% of the price of the whole phone.

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