iPhone sales in China drop 24% amidst Huawei’s rising demand

WEB DESK: In the first six weeks of 2024, Apple experienced a significant setback in China as iPhone sales plummeted by 24 per cent year-on-year, according to a report from research firm Counterpoint.

This decline comes as the tech giant faced intensified competition from local rivals, primarily Huawei.

Counterpoint’s findings reveal that Huawei, Apple’s chief competitor in the premium smartphone market in China, witnessed a substantial 64 per cent increase in unit sales during the same period.

As a result, Apple’s share of the Chinese smartphone market dipped to 15.7 per cent, securing the company in fourth place.

This is a notable decline from the same period in 2023 when Apple held the second position with a 19 per cent market share.

In contrast, Huawei rose to second place, expanding its market share from 9.4 per cent to 16.5 per cent within a year. The overall smartphone market in China also contracted by 7 per cent, further indicating the challenging landscape.

Counterpoint’s senior analyst, Mengmeng Zhang, attributed Apple’s decline to stiff competition at the high end from Huawei and aggressive pricing strategies by domestic rivals such as OPPO, Vivo, and Xiaomi, which put pressure on Apple in the mid-range segment.

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 flagship stores on Tmall, Alibaba’s major marketplace platform.

This move followed previous discounts of up to 500 yuan offered on Apple’s official sites in the preceding month.

Huawei’s resurgence in premium smartphone sales played a crucial role in the company’s upward trajectory.

The release of the Mate 60 series in August 2023 marked a turning point for Huawei, which had grappled with US restrictions on key component exports for years.

Honor, the smartphone brand separated from Huawei in 2020, stood out as the only other top-five brand to witness an increase in unit sales, rising by 2 per cent.

On the contrary, Chinese brands Vivo, Xiaomi, and Oppo experienced declines of 15 per cent, 7 per cent, and 29 per cent, respectively.

As the smartphone market in China undergoes shifts, it remains to be seen how Apple will adapt to the changing dynamics and fierce competition in the region.