Tough times for Apple as iPhone 15 sales dip amidst strong competition

WEB DESK: Apple’s latest iPhone 15 series is facing sluggish sales in China, according to a recent research.

A Bloomberg study shows a decrease in iPhone 15 sales during its initial 17 days on the market, compared to the same period for the iPhone 14 last year.

Analysts estimate a 4.5 per cent decline, translating to millions of fewer devices sold at Apple’s scale. In response to this news, Apple’s stock has dropped by 1 per cent in premarket trading.

This decline in sales is attributed to sustained weak consumer demand and intense competition from local competitors, notably Huawei.

Research analysts at Jefferies report that Huawei has surpassed Apple to become the best-selling smartphone manufacturer in the region. They predict this trend will persist through 2024.

In recent weeks, China has enthusiastically embraced Huawei’s impressive launch of the Mate 60 Pro, despite US sanctions against the company.

Additionally, the Chinese government has banned its officials from using iPhones in the workplace due to security concerns. Consequently, some argue that the Apple brand has suffered a cultural setback.

However, there is a silver lining for Apple. The weak performance in the Chinese market might be compensated by robust domestic sales in the United States.

Read more: iPhone 15 Pro users troubled by a new ‘screen burn’ problem

Apple is scheduled to announce its quarterly earnings results on November 2nd, which will include sales data for the period from July to September, encompassing the first week of iPhone 15 sales.

Investors are eagerly awaiting these results to gauge how the revenue from the iPhone business unit compares to the previous year and consensus expectations.

The reception of the new iPhone also plays a crucial role in determining sales during the current holiday season. Apple will report its holiday quarter results in January.

Despite these challenges, Apple’s overall financial performance this year has been lackluster. The company has experienced year-over-year revenue declines for the last three quarters.