While local competitors soared, Apple’s numbers dropped 9% compared to the same period last year — down to 9.8 million units.

This is the seventh consecutive quarter Apple has seen its shipment volume shrink in China. For a company that once shaped global tech culture, that’s a worrying trend.

At the heart of the issue? Pricing. Apple is sticking to its high-end strategy, but that playbook isn’t working anymore — at least not in China.

A new wave of government subsidies, rolled out in January, is giving Chinese consumers a 15% rebate on devices priced below 6,000 yuan (about $820). Most iPhones don’t qualify. But brands like Xiaomi do, and they’re cashing in.

Xiaomi shipped 13.3 million phones — a 40% jump from the same time last year. That puts it comfortably ahead of Apple in market share, as more Chinese buyers choose value over brand prestige.

“The subsidy scheme is clearly designed to boost domestic consumption, but it’s also giving Chinese brands a strong edge,” said IDC analyst Will Wong. “Apple’s premium pricing structure has prevented the U.S. company from capitalising on new government subsidies.”

Overall, China’s smartphone market grew by 3.3% in Q1. So while the pie got bigger, Apple’s slice got smaller. Its market share now sits at 13.7%, down from 17.4% in the previous quarter — a sharp drop in such a competitive space.

Now, to be fair, Apple isn’t doing badly in shipments everywhere. Globally, it shipped 57.9 million phones in Q1 — its best first-quarter performance ever, with a 10% increase year-on-year.

But China isn’t just another market. It’s the world’s largest consumer electronics battlefield, and losing ground here sends a strong signal.

Chinese consumers are changing. They’re more price-sensitive, more nationalistic, and less dazzled by the Apple logo. And with brands like Xiaomi, Oppo, and Vivo offering sleek design and solid performance at lower prices — backed now by government support — Apple’s old charm isn’t quite cutting it.

The company has a decision to make. Stick to its high-margin strategy and risk further erosion in one of its most important markets? Or rethink its approach to pricing and product positioning in China?

Anyways, this is beyond being one bad quarter. It’s about whether Apple can still compete in a market that’s no longer waiting to be impressed.

Bashorun reiterated the inevitable integration of AI into various sectors, saying, “AI is going to stay whether we are prepared for it or not. For organisations that have been slow to adopt, it’s essential to accelerate this journey, or risk being left behind.”

He expatiated the current state of AI, noting how its application goes beyond personal computing and data maximisation to revolutionising mobile transactions and interactions. 

“We are in an era where besides personal computing data, you need to maximise the internet as much as possible. Mobile is now the medium for every transaction and interaction,” Bashorun highlighted.

“The investment in managing our data centres has dropped significantly because now we can access our data from anywhere. This is a direct benefit of maximising cloud technology,” Bashorun said, discussing the practical benefits of AI in cloud technology.

Infobip Highlights Power of AI for Customer Experience at Exclusive Business Dinner in Lagos

He went further to explain the role of natural language processing (NLP) in AI, noting that today, this innovation is used across various applications, whether as a developer or a user. “Microsoft’s investment in identifying and understanding natural language helps us tailor solutions to meet specific needs.”

The importance of AI in optimising employee productivity and customer engagement is currently at the fore. “We need to maximise technology to improve education and various industries. This includes using AI to automate repetitive back-office tasks, enhancing efficiency and allowing human resources to focus on more complex work,” he explained.

He illustrated the application of AI in practical scenarios, such as document processing and workflow management. “Today, AI can scan, understand, and categorise documents, transforming handwritten notes into digital files efficiently.”

In discussing AI’s impact on customer service, Bashorun pointed out, “AI-driven chatbots and virtual assistants are enhancing customer interactions by providing 24/7 support and resolving issues efficiently. This greatly enhances the overall customer experience.”

Taiwo Bashorun also touched on the importance of AI in financial services, particularly in fraud detection and financial planning.

“Advanced AI tools help us monitor transactions in real-time, detect anomalies, and prevent potential fraud. Additionally, AI-driven financial planning tools enable customers to manage their finances more effectively and make informed investment decisions,” he noted.

The disruptive potential of AI in various industries was one major highlight of Bashorun’s presentation. He shared that Generative AI is boosting how we approach data and automation. 

“From creating detailed documents to generating insightful PowerPoint presentations, AI is making processes more efficient and streamlined.”

Bashorun concluded with an encouragement for businesses to embrace AI and leverage it to the fullest. “Let us embrace AI to optimise our business operations, drive employee productivity and transform our products and services.”

In a new global program for value-added resellers, Huddly partners exclusively with select resellers and prohibits third-party platform sales.

In the AV industry, one size does not fit all. Millions of people struggle daily with inadequate, unreliable AV gear. The pandemic years have forced value-added resellers to compete with internet resellers and third-party platforms by offering standardized solutions.

To counteract this trend and drive growth for its channel partners, Huddly – a leading provider of AI video conferencing cameras– has launched a selective global partner program.

Drawing on the experience of its commercial team, including CCO Daniel Johansson, who has a proven track record of implementing successful partner programs at Tandberg and Cisco, the Huddly Partner Program acknowledges the importance of value-added resellers in the industry.

“Value-added resellers are at the heart of the AV industry,” says Johansson. “They excel at building strong client relationships by delivering bespoke solutions. Our new partner program is designed to support the great work done by resellers and help them achieve their business goals. Throughout the program’s creation, we took great care to incorporate partner feedback to ensure that we provide them with the tools they need to succeed.”

Reseller enablement and support

From July 3rd, 2023, only authorized Huddly Partners will be allowed to sell and represent Huddly. The company’s decision to halt third-party platform sales is a significant move towards boosting its channel business and maximizing profitability, demonstrating its dedication to value-added reseller partners.

“Higher channel revenue is critical to our objective of increasing gross margin, and we are committed to achieving this by supporting the long-term success of our resellers,” emphasizes Johansson. “To that end, we are implementing a selective distribution policy to ensure our partners’ success through focused partner enablement and support. We are fortunate to have great relationships with key global resellers and believe this program will strengthen our bond with them while adding value for our end users.”

A powerful deal registration program

The program is selective and comprehensive, providing resellers with substantial benefits to help them increase their margins while protecting the value chain.

As Johansson notes: “Our partners’ hard work and success are integral to our own, and we want to reward their efforts. Approved Huddly Partners will enjoy the protection of our powerful deal registration program, which provides pricing benefits and promotes close alignment with Huddly for those who lead with our solutions and register projects early.”

In addition to deal registration, the program offers partners resources and support for growth. This includes access to product and marketing tools, technical support, and training programs.

Building strong partnerships

The program comprises three levels, each created to meet unique business goals. Huddly provides a range of benefits for partners who seek closer collaboration.

These include funds for market development, substantial discounts, personalized support, and the opportunity to sell the Huddly Crew AI-directed multi-camera system, recently awarded by Frost & Sullivan for its innovative approach to hybrid meetings.

Johansson comments:

“As a company committed to empowering human collaboration, Huddly recognizes the importance of strong partnerships. We opted for a selective approach to prioritize close collaboration with partners who share our commitment to tailored solutions and exceptional customer care. Together, we can provide users with the best experience.”

Applications open now

Applications for the Huddly Partner Program are now being accepted, and Huddly has set up an online authorization process that lets resellers register their interest. To be eligible, resellers must have an agreement with an authorized Huddly distributor.