Smartphone retailers in China are saying that it has become difficult to sell phones lately because consumers have become reluctant to upgrade. The cooling economy is one of the reasons.
Despite this, domestic brands have started to make major strides. They have managed to attract customers with their top hardware as well as innovative features. These firms, led by Huawei, have begun to move upmarket as well, targeting the $500-800 price range. This has resulted in a loss of share for Apple in a major market segment, bringing fresh price drops for iPhones by retailers in China.
According to retailers, most of the people who are upgrading are choosing to move to Chinese brands from Apple. There are only a handful of people who are going the other way.
Chinese smartphone companies like Huawei, Vivo and Xiaomi had once tried to get market share in China by delivering devices that gave value for money. However, the demand by consumers for better phones has prompted them to rethink their strategy. It is important to note that China happens to be the biggest market for smartphones in the world.