Apple iPhone Sales Decline in China as Huawei Surges, Report Reveals
According to a report by research firm Counterpoint, Apple experienced a significant decline in iPhone sales in China, with a 24% decrease in the first six weeks of 2024 compared to the previous year. Meanwhile, Chinese tech giant Huawei witnessed a substantial 64% increase in sales during the same period, intensifying competition in the Chinese smartphone market.
The surge in Huawei’s sales comes as Apple faces stiff competition from local rivals, particularly in the higher-end segment. Counterpoint Research’s Mengmeng Zhang noted that Apple encountered challenges from aggressive pricing strategies employed by competitors like Oppo, Vivo, and Xiaomi, further squeezing its market position.
China, a key market for Apple, witnessed an overall decline of 7% in smartphone sales during the same period, reflecting broader challenges in the industry. Despite facing US sanctions, Huawei’s sales received a significant boost with the release of its Mate 60 series of 5G smartphones in August, defying expectations due to constraints on critical technology components.
The report also highlighted that Honor, Huawei’s smartphone brand, witnessed an increase in sales, while other top brands like Vivo, Xiaomi, and Oppo experienced declines in the first six weeks of the year.
Apple’s share of the Chinese smartphone market dropped to 15.7%, down from 19% the previous year, pushing it to fourth place. In contrast, Huawei’s market share surged to 16.5%, positioning it in second place, up from 9.4% the previous year.
To mitigate the impact of declining sales, Apple initiated discount offers on its official websites in China and subsidized certain iPhone models through flagship stores on Alibaba’s marketplace platform Tmall. However, a slowdown in demand in China could potentially impact Apple’s revenue, which disappointed investors in its recent earnings report.
Apple reported sales of $20.82 billion in China for the last quarter of 2023, down from $23.9 billion in the previous year. Consequently, Apple shares experienced a 2.8% decline in New York trade following the report’s release, reflecting investor concerns about the company’s performance in the Chinese market.
