What happened: Chinese iPhone users are less well-off than individuals who use other phone brands, including Huawei and Xiaomi, according to research firm MobData. The company found that iPhone users are perceived to be part of a group called the “invisible poor,” those who don’t look as poor as the reality of their financial situation. The research found that most iPhone users are unmarried females who make less than RMB 3,000 ($433) a month, while Huawei buyers are usually married males who earn between RMB 5,000 and RMB 20,000.
Why it’s important: Apple usually raises the price of its iPhones every year, pushing users to cheaper alternatives. The move has driven users to buy older iPhones, such as the 6, 6S, and 6S Plus, as well as second-hand iPhone models. Apple has been struggling to get a foot up on its competitors in China, where it controls just 9% of the market. The company has reduced orders from two component suppliers in China after its slightly lower-priced iPhone XR model failed to perform.