iPhone sales falls in first week of 2024 in China: Jefferies

Apple's iPhone sales in China dropped by 30% in the first week of 2024, Jefferies analysts.

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The decline in Apple's sales was the primary catalyst for an overall double-digit drop in China smartphone shipments for the first week.

Source: AP

Jefferies analysts said Apple's decline is largely attributed to competitive pressures from Chinese rivals, especially Huawei, which launched its Mate 60 series of phones in August last year.

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Other Android brands and Huawei achieved relatively flat growth year-over-year during this period, the note said.

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This decrease in Apple's sales took place despite aggressive discounting of multiple iPhone models through major Chinese online marketplaces, according to the research note.

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The 30% drop represents an acceleration from the 3 per cent year-over-year decline the US company saw for all of 2023 in its third-largest market, Jefferies said.

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The 3% decline in 2023 equated to a 0.4 per cent decrease in Apple's market share.

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For the final quarter of 2023, Huawei's share in the Chinese smartphone market rose by about 6 per cent, according to the note.

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According to the Jefferies analysts, Apple will likely face more competitive pressure from domestic rivals throughout 2024.

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The forecast predicts Apple's shipment volumes will continue declining by double digits in 2024, while Huawei is expected to continue gaining market share.

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Specifically, they estimate that Huawei will ship approximately 64 million smartphones worldwide in 2024.

Source: Apple