Apple IPhones Sales Fall 24% In China Amid Competition And Headwinds

According to a new report, iPhone sales fell 24% in the first six weeks of 2024, posing substantial challenges for Apple and other Western technology businesses in a critical market.

According to Counterpoint Research, the overall mobile market in China declined by 7%, with businesses such as Apple, Oppo, and Vivo seeing decreases.

However, the difficulty for Apple has been ongoing for a year; as China’s economy has weakened, trade tensions and nationalism have risen. Counterpoint reported that customers who may have previously considered now opt for national brands, namely Huawei.

Apple IPhones Sales Fall 24% In China Amid Competition And Headwinds

“Primarily, faced stiff competition at the high end from a resurgent Huawei while getting squeezed in the middle by aggressive pricing from the likes of Oppo, Vivo, and Xiaomi,” Mengmeng Zhang, a Counterpoint senior analyst, stated in a press statement. “Although the iPhone 15 is a great device, it has no significant upgrades from the previous version, so consumers feel fine holding on to the older-generation iPhones for now.”

Apple shares fell 2.8% on Tuesday. The stock has lost 11.6% this year due to concerns about slowing sales, notably in China.

The corporation did not respond to a request for comment.

The research comes amid a faltering Chinese economy, a challenging housing market, increasing unemployment among younger workers, and increased rivalry among higher-end vendors in China, particularly from Chinese device giant Huawei.

China is an important market for the company, as it is the second largest after the United States. Apple previously achieved significant gains during its launch period last year. The company continues to give discounts to assist in alleviating some of the downturn.

Apple IPhones Sales Fall 24% In China Amid Competition And Headwinds

Last year, Huawei’s Mate 60 made headlines when the US authorities requested further information on the Pro variant, which included a sophisticated CPU. Its appearance astounded industry observers, who questioned how the company could produce such a device in the wake of the United States’ extensive attempts to limit China’s access to foreign semiconductor technology due to alleged national security concerns.

Some Chinese buyers believe US government sanctions have victimized them and are gravitating toward Huawei’s Mate 60 smartphone, which is approaching Apple sales.

According to Jeff Fieldhack, a research director at Counterpoint, one issue is that Apple had a strong January last year owing to part shortages but did not have any shortages this year.

Apple IPhones Sales Fall 24% In China Amid Competition And Headwinds

“This isn’t a major deal for Apple in the long term,” he added. “It is still a successful iPhone launch and there is more discounting and marketing they can do this year in China to help alleviate the competition from Huawei.”

In January, Huawei held 17% of the mobile market in China, compared to the iPhone’s 16%. Huawei’s demand exceeds its supply, implying that it might sell more, according to Fieldhack.

“Apple, to its credit, ended the year at number one, which was extraordinary despite headwinds from China,” added the analyst.

SOURCE – (CNN)