Our Black Friday Sale is now live until Monday 29th November 2021! Apply a 15% discount to your cart in Store using promotional code: EBLACKFR21

Home and Technology Our insights capture shifts in consumer lifestyles and themes impacting the global home and technology markets, including new business models, sustainability, innovation and the future home.

Apple Loses the iPhone Trademark Lawsuit in China – Still Poised for Growth

5/4/2016
Wee Teck Loo Profile Picture
Wee Teck Loo Bio
Share:

Apple Inc (Apple) lost a trademark suit against a Chinese company in China. The Beijing Municipal High People's Court ruled that Xintong Tiandi Technology is allowed to sell handbags and other leather goods with the brand name iphone in China.

iphone leather goods

Source: Xintong Tiandi Technology

Hollow victory

The court ruling follows Apple’s dismal quarterly earnings, with a 13% decline in revenue globally compared to the same quarter just a year ago. The court ruling is a political victory to the communist ruling party but there is no foreseeable impact on iPhone sales. The discerning and brand conscious Chinese consumers will not pay US$600 for an iPhone branded handbag by Xintong Tiandi. In fact, the leading handbags  brands in China were Louis Vuitton and Chanel, cornering a massive 13% value share in 2014. The most popular domestic handbag brand is Powerland, ranked lower than Gucci and Prada.

Apple wins

While Apple’s revenue is widely expected to take a hit in 2016, there is still an insatiable appetite for iPhones in emerging markets like China. China is a critical market for Apple and sales of iPhone is projected to hit 37 million units in 2016. A lot is riding on the successor model of the iPhone 6S to spearhead Apple’s assault on the high-end smartphone market in 2016 and the court ruling will not affect Apple’s sales.

Interested in more insights? Subscribe to our content

Shop Our Reports

The New Normal: The Rise of Affordable Flagship Products

Products that offer premium features without the high price tags are becoming popular. What are the factors driving this trend and how are companies like Apple…

View Report

Voice of the Industry: Home Care 2021

In the Voice of the Industry Survey series, Euromonitor connects with industry professionals to explore trends and innovations. This report focuses on the home…

View Report

Consumer Electronics: Quarterly Statement Q1 2021

Sales of consumer electronics are projected to undergo a V-shaped recovery, following a 5% decline in value terms in 2020. As consumers become accustomed to the…

View Report
Passport Our premier global market research database with detailed data and analysis on industries, companies, economies and consumers. Track existing and future opportunities to support critical decision-making across all functions within your organisation Learn More