Updated January 8th, 2024 at 17:16 IST
Apple faces 30% drop in iPhone sales in China, Huawei emerges as strong competitor
The decline comes amid a broader trend of Chinese tech companies gaining ground in their home market.
Apple China sales: Apple encounters a significant challenge in the Chinese smartphone market as iPhone sales plummeted by 30 per cent in the first week of 2024, marking an acceleration from the 3 per cent year-over-year decline witnessed throughout 2023. This decline in sales was a pivotal factor contributing to an overall double-digit drop in China smartphone shipments during the same period.
Jefferies analysts, in a note, highlighted the competitive pressures faced by Apple from domestic rivals, particularly Huawei, whose Mate 60 series, launched in August 2023, has been instrumental in Huawei's resurgence in the high-end smartphone market.
Despite aggressive discounting strategies, including a 16 per cent price reduction on platforms like Pinduoduo for iPhone 15 Pro and iPhone 15 Pro Max, Apple struggled to maintain its market share in the face of stiff competition. The decline comes amid a broader trend of Chinese tech companies gaining ground in their home market.
For the final quarter of 2023, Huawei saw a rise of approximately 6 per cent in its share of the Chinese smartphone market, indicating a strong comeback after years of U.S. sanctions. Jefferies analysts anticipate Apple facing continued competitive pressure throughout 2024, with a forecast of double-digit declines in shipment volumes, while Huawei is expected to strengthen its market share.
Notably, Huawei is projected to ship around 64 million smartphones globally in 2024, a significant increase from the estimated less than 35 million shipped in 2023. As the Chinese smartphone market shows signs of rebounding, Apple's challenges underscore the evolving dynamics in the highly competitive tech landscape. Apple and Huawei have not yet responded to requests for comments on the matter.
(With Reuters inputs.)
Published January 8th, 2024 at 17:16 IST
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