Yuan drowned Apple. The weakening of the national currency helped the Chinese IT-manufacturers to become leaders in the domestic market and the attack on the external

In the domestic market led to a depreciation of the renminbi that American products, such as smart phones Apple, has become more expensive because of its supply of dollars. At the same time prices for Xiaomi phones and Lenovo Chinese production has not changed: they occupied first and second place on deliveries of smart phones in China, while Apple fell to third place.

South Korean manufacturer Samsung, according to IDC, is not even among the top five for the supply of smartphones in the Chinese market continues to lose profits and the fifth consecutive quarter.

At the same time on the international market, Chinese manufacturers are becoming more competitive as earn an income in dollars, and the costs are paid in RMB decliners. This allows them to aggressively capture foreign markets. Xiaomi recently began selling in India and Brazil, and Huawei sells abroad for half of its smartphones, increasing sales in Latin America, according to WSJ.

In Russia, Chinese brands also show significant growth. So, Lenovo smartphone sales for the first six months of 2015 has doubled, allowing the Chinese brand to occupy the third position after Samsung and Nokia.

In recent years, Chinese manufacturers have realized that their strength can be not only in price but also in the design of the appearance of the devices, their software and marketing.

Despite Apple’s success in the Chinese market, domestic manufacturers show significantly greater growth. The devaluation of the yuan can only enhance this effect. For example, in Russia in December 2014 during the collapse of the ruble excessive demand has led to the devastation of the shelves of electronics stores, and the ensuing rise in prices led to a sharp drop in sales. Subsequently, prices declined very slowly. Apple has this affected not only the sales of smartphones in Russia itself, but also on the sales app store App Store.

Over the past two decades, China has made a great leap in the development of information technology. If before the devaluation of the yuan would not help it compete with the American IT-companies now low cost of production allows Chinese producers to compete with the leaders of the United States in the field of server and network equipment.

So, buying an assembly line of servers from IBM made Lenovo’s leading supplier of server equipment. Huawei, which ranked second, also made a leap in sales of 30%. The growth of HP in the Chinese market was only 9%, which allowed the American manufacturer to take the fifth place, and Dell supplies decreased by 2.5%.

29 August 2015

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