Apple iPhone Sales Decline in China Amid Huawei’s Surge, Report Reveals
Apple iPhone Sales Decline in China Amid Huawei’s Surge, Report Reveals
In a recent report, research firm Counterpoint unveiled a concerning trend for Apple in China, indicating a significant 24% decline in iPhone sales during the first six weeks of 2024 compared to the previous year. Concurrently, local competitor Huawei experienced a remarkable 64% surge in sales within its home market during the same period, underscoring the intensifying competition faced by the US tech giant.
The data reflects a challenging landscape for Apple in China, where it contends with robust competition from domestic rivals. The surge in Huawei’s sales, particularly in the higher-priced segment of the Chinese phone market, has exerted pressure on Apple. Moreover, aggressive pricing strategies adopted by competitors such as Oppo, Vivo, and Xiaomi have further marginalized Apple’s market position.
China, a pivotal market for Apple, witnessed an overall decline of 7% in smartphone sales during the same period, exacerbating the challenges faced by the tech giant. Despite ongoing efforts to maintain its foothold in the region, Apple finds itself grappling with diminishing market share and heightened competition.
Huawei’s resurgence in the Chinese market is particularly noteworthy, given its struggles in recent years due to US sanctions. The launch of its Mate 60 series of 5G smartphones in August proved to be a turning point, driving substantial growth in sales despite supply chain disruptions.
Interestingly, Honor, the smartphone brand separated from Huawei in 2020, emerged as another top performer, recording sales growth in China. Conversely, Vivo, Xiaomi, and Oppo experienced declines in sales during the same period, according to Counterpoint’s findings.
Apple’s market share in China has dwindled, dropping to 15.7% from 19% in the previous year, relegating the company to the fourth position from its former second-place standing. Meanwhile, Huawei ascended to second place, with its market share soaring to 16.5% from 9.4% a year earlier.
In response to the challenging market conditions, Apple initiated discounts on its official Chinese websites and subsidized certain iPhone models through flagship stores on Alibaba’s Tmall platform. However, these measures may not be sufficient to offset the impact of declining demand on Apple’s revenue.
The disappointing sales figures in China have raised concerns among investors, especially following Apple’s underwhelming earnings report last month. With sales in China totaling $20.82 billion in the final quarter of 2023, a notable decline from $23.9 billion in the previous year, Apple faces mounting pressure to navigate the increasingly competitive landscape in the region.
The repercussions of the sales slowdown in China were evident in Apple’s stock performance, with shares declining by 2.8% in New York trade on Tuesday. As Apple grapples with heightened competition and shifting market dynamics, its ability to innovate and adapt will be crucial in sustaining its position in one of the world’s largest smartphone markets.
