Apple’s introduction of the iPhone Duo, its first folding smartphone, has received a lukewarm reaction from consumers in China, a critical market for the tech giant. Priced at 15,999 yuan (approximately $2,230), many potential buyers are hesitant, focusing on the high cost relative to homegrown competitors like Huawei and Xiaomi. Some users on the Chinese social media platform WeChat have expressed intentions to delay their purchases until future generations of foldable devices are released.
Despite the tepid response in China, Apple’s shares increased over 3% following the product launch. However, the company is facing significant competition in a market that represents about 17% of its total revenue. Chinese brands such as Huawei, Xiaomi, Honor, Oppo, and Vivo already dominate the foldable sector with a variety of offerings, positioning the iPhone Duo amidst a well-established lineup.
In anticipation of Apple’s event, both Xiaomi and Huawei unveiled their own flagship foldables, priced more competitively than the iPhone Duo. For instance, the Xiaomi 18 Fold is set at 10,999 yuan. Additionally, concerns have arisen around the Duo’s lack of a traditional SIM-card slot, necessitating visits to carrier stores for eSIM activation.
Market data indicates that while Apple has strong global positioning, it has recently slipped behind Samsung in smartphone shipments. Among foldable phones, Samsung commands a significant market share, estimated at 32%, while Apple and Huawei trail with 25% and 24%, respectively. Pre-orders for the iPhone Duo are expected to start on October 16, with sales beginning on October 23.
Why this story matters
- Apple faces a crucial test in a competitive market with heavy price sensitivity.
Key takeaway
- Consumer reactions in China highlight the challenges Apple must navigate with its pricing strategy for the iPhone Duo.
Opposing viewpoint
- Some analysts believe that Apple’s brand loyalty and ecosystem could help it succeed despite the initial cooler reception.
