Source: Bohu Finance
Apple's backyard is on fire!
A few days ago, the second-largest Apple retail store in the world opened in Shanghai. Cook's front foot had just arrived in Shanghai to unveil it, and Apple's back foot was “stolen from home” on the other side of the ocean.
On March 21, local time, the US Department of Justice filed an antitrust lawsuit against Apple, claiming that Apple's astronomical market value of 3 trillion dollars was obtained at the cost of the interests of consumers, developers, and competitors. The lawsuit also alleges that in order for consumers to only use iPhone apps, Apple refused to support cross-platform messaging apps, restricted third-party digital wallets and non-Apple branded smartwatches, and showed that every step Apple takes is strengthening its monopoly moat.
Of course Apple wouldn't admit it!
As early as 2019, the US Department of Justice began an antitrust investigation against Apple, and believed that Apple did collect “Apple Tax” by monopolizing the iPhone software distribution business and obtain huge profits.
Because users only need to download apps through the Apple App Store, in-app purchases, subscription services, etc. can only be paid through the Apple system, and Apple will deduct 30% of the developer's “Apple Tax” here. So did anyone notice that, whether ordering takeout or taking a taxi, Apple phones always seem to be a little more expensive than Android phones? The trick is here!
Although Apple has never published data on the “Apple Tax,” some media have estimated through industry statistics that the “Apple Tax” will bring Apple about 1608 billion yuan in revenue in 2023. Also, compared to the Google App Store, the number of Apple apps is only half that of Google, yet it earns twice as much money as Google. You can see how fragrant this “apple tax” is!
So even if the whole world “rejects” the Apple tax, this is a “big golden bull,” and I still have 1.5 billion active iPhone users. As for the Apple tax, you punish you, I'll take mine!
Just this time, I'm afraid Apple won't be this tough!
Because Apple now has to face not only antitrust challenges from the European Union and the US Department of Justice, but also the declining Chinese market!
As can be seen from Apple's FY24 quarterly report, Apple's revenue of 20.82 billion US dollars in Greater China fell far short of expectations; moreover, sales also fell 13% year on year; in the first six weeks of this year, iPhone sales in China fell 24% year on year.
But Cook threw the blame on the “economic downturn”?! However, this reason is somewhat reluctant!
Because domestic smartphone market shipments increased slightly by 1.2% in the fourth quarter of last year. In other words, Apple's decline was based on the recovery of the domestic mobile phone market!
And Cook didn't seem to realize that Apple is gradually falling out of favor in the Chinese market!
Look at what folding screens are currently being rolled up in China. In 2023, domestic shipments of folding screen phones increased by 114.5% year on year, and the average selling price also dropped to 9107 yuan, which is already the same as the price of iPhone flagship models. In other words, for every folding screen phone sold, Apple could lose a potential customer. Moreover, the domestic battle for “AI phones” is gradually beginning.
As far as these two fields are concerned, Apple doesn't seem to have integrated into the Chinese market yet.
Of course, Apple has also made adjustments, which is to cut prices. The prices of almost all products on Apple's official website were reduced to a greater or lesser extent during the Spring Festival this year. But can this solve Apple's sales concerns? Akika doesn't think it's necessary!
First, compare the price reduction trend of domestic mobile phones. They all fell directly from the starting price, and all Apple's cuts were products after launch, which meant that domestic phones were already winning at the starting line; furthermore, due to the gross margin limit, Apple was able to cut so many things!
It is worth mentioning that Cook came to Shanghai a few days ago to attend the opening ceremony of the Jing'an store. This is Cook's third visit to China in nearly a year. Now the question arises. At a time when sales are falling and monopoly lawsuits continue, can Cook come to China frequently to boost Apple's confidence in the Chinese market?
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