A recent report reveals a significant decline in iPhone sales by 24% during the first six weeks of 2024, contributing to broader challenges faced by Apple and other Western tech giants in a critical market.
According to analysts at Counterpoint Research, the overall mobile market in China witnessed a 7% decrease, with companies like Apple, Oppo, and Vivo experiencing notable declines in sales.
The downturn for Apple in China has been ongoing for the past year, attributed to factors such as the slowing Chinese economy, escalating trade tensions, and growing nationalism. Counterpoint highlights that consumers who once favored Apple products are now turning to national brands, particularly Huawei.
Mengmeng Zhang, a senior analyst at Counterpoint, pointed out that Apple faced intense competition from Huawei at the high-end segment, while facing pricing pressure from other Chinese competitors like Oppo, Vivo, and Xiaomi. The lack of significant upgrades in the iPhone 15 compared to its predecessor also contributed to consumers holding onto older iPhone models.
Apple’s stock experienced a 2.8% decline following the report, reflecting concerns about weakening sales, especially in the Chinese market, where it has fallen approximately 11.6% this year.
Despite the challenges, Apple has not provided any comments on the report.
The Chinese market remains crucial for Apple, being the second-largest market behind the US. While the company saw significant gains during its launch period last year, it continues to offer discounts to mitigate the downturn in sales.
Huawei’s Mate 60 smartphone has gained traction among Chinese consumers, partly due to perceived grievances over US government sanctions. The demand for Huawei devices, including the Mate 60, outstrips its supply, indicating potential for further market share gains.
Jeff Fieldhack, a research director at Counterpoint, believes that while the sales decline is noteworthy, it is not a major setback for Apple in the long term. He suggests that Apple can leverage discounts and marketing strategies to compete more effectively with Huawei in the Chinese market.
In January, Huawei accounted for 17% of the mobile market share in China, slightly surpassing Apple’s 16% share. Despite challenges, Apple ended the year as the top-selling smartphone brand, demonstrating resilience amidst the competitive landscape in China.
