Updated March 5th, 2024 at 15:03 IST

Apple's iPhone sales fall by 24% YoY in China

Apple's share of the Chinese smartphone market plummeted to 15.7%, positioning it in fourth place, a notable decrease from its second-place standing in 2023.

Reported by: Business Desk
Apple iPhone | Image:Pexels
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iPhone sales in China: Tech giant Apple has seen a sharp fall in sales of its popular smartphone iPhone in China, dropping by 24 per cent YoY during the initial six weeks of 2024, said media reports quoting research firm Counterpoint. This decline can be attributed to heightened competition from domestic rivals like Huawei.
Huawei, Apple's chief competitor in the premium smartphone segment in China, saw a sharp increase in unit sales, rising by 64 per cent during the same period, as outlined in the report.

Apple's share of the Chinese smartphone market plummeted to 15.7 per cent, positioning it in fourth place, a notable decrease from its second-place standing in the corresponding period of 2023 when it held a 19 per cent market share. In contrast, Huawei surged to second place, with its market share expanding to 16.5 per cent from 9.4 per cent a year earlier.

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The overall smartphone market in China experienced a 7 per cent contraction, according to the report.

Counterpoint's senior analyst Mengmeng Zhang highlighted that Apple faced formidable competition at the high end from Huawei, while also encountering pressure from aggressive pricing strategies employed by competitors like OPPO, Vivo, and Xiaomi.

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In response to the challenging market conditions, Apple initiated subsidies of up to 1,300 yuan ($180.68) on certain iPhone models last week through its flagship stores on Tmall, Alibaba's prominent marketplace platform. Prior to this, the company had already introduced discounts of up to 500 yuan on its official sites the previous month.

Huawei's resurgence in premium smartphone sales was attributed to the release of its Mate 60 series in August, following years of struggles due to US restrictions on the export of key components to the company.

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Notably, Honor, the smartphone brand separated from Huawei in 2020, was the sole top-five brand to witness an increase in unit sales during the initial six weeks of the year, rising by 2 per cent. Conversely, Chinese brands Vivo, Xiaomi, and Oppo experienced declines of 15 per cent, 7 per cent, and 29 per cent respectively.

(With Reuters inputs)

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Published March 5th, 2024 at 15:03 IST