Apple’s Q1 smartphone shipments in China fall 19%

Apple Q1 China shipments: Apple experienced a strong decline in smartphone shipments in China during the first quarter of this year, marking its worst performance since 2020. Market data revealed that Apple's share in the country's smartphone market dropped to 15.7 per cent from 19.7 per cent a year earlier, nearly equalling Huawei's market share, which surged by 70 per cent during the same period.

As a result of these shifts, Apple relinquished its position as the top smartphone seller in China to Vivo, slipping to third place in the rankings for the quarter. Huawei, with its market share jumping from 9.3 per cent to 15.5 per cent year-on-year, claimed the second spot, while Honor, a Huawei subsidiary, secured second place.

Counterpoint analyst Ivan Lam attributed Huawei's resurgence and Apple's decline in the premium segment to the impact of Huawei's new product launches and subdued replacement demand for Apple devices compared to previous years.

Looking ahead, Lam suggested that Apple could potentially regain momentum in the second quarter through new colour options and aggressive sales strategies. Despite facing challenges, there have been indications of gradual improvement in weekly iPhone sales.

During the first quarter, Apple initiated various promotional campaigns, offering discounts and subsidies of up to 1,300 yuan ($180) on certain iPhone models to attract consumers.

Meanwhile, Huawei's recent release of its Pura 70 series of high-end phones, following the Mate 60 series launch in August, further solidified its position in the market. The Mate 60 series was hailed as a comeback for Huawei in the high-end segment and underscored the company's resilience against US sanctions, as the devices feature advanced domestically-produced chips.

However, US Commerce Secretary Gina Raimondo emphasized that the chip powering Huawei's flagship phone is not as advanced as American chips, indicating the effectiveness of US restrictions on shipments to the telecoms giant.

Despite challenges, Canadian research firm TechInsights forecasts that overall smartphone shipments in China this year could exceed 50 million units, with the Pura 70 series expected to contribute 10 million units. This projection would place Huawei as the leading seller with a 19 per cent market share, up from 12 per cent in 2023.

The first quarter also witnessed a 1.5 per cent growth in China's smartphone market, marking the second consecutive quarter of positive growth, according to Counterpoint.

(With Reuters inputs)