In the first six weeks of 2024, Apple Inc's iPhone sales in China dropped by 24% compared to the same period in the previous year, as reported by research firm Counterpoint. The country's overall smartphone sales also saw a 7% decline year-on-year during the same period, with significant declines from key manufacturers including Apple, OPPO, and Vivo.
Apple's falling sales primarily stemmed from its stiff competition with Huawei at the high-end market segment, along with a squeeze in the middle due to aggressive pricing strategies by OPPO, Vivo, and Xiaomi, explained Senior Analyst Mengmeng Zhang. Despite the quality of the iPhone 15, consumers felt it offered no significant upgrades from its predecessor and were content with holding on to older-generation iPhones.
The decline in Apple's iPhone sales in China indicates the intense competition from local smartphone manufacturers. In contrast to Apple, Huawei reported a whopping 64% increase in sales in the country during the same period.
The stabilization of the market depends greatly on a rise in consumer confidence, which is currently uncertain due to various events, particularly those in the real estate sector. According to Senior Analyst Ivan Lam, while Apple has room for short-term adjustment, it's not an easy situation. Lam drew attention to Apple's aggressive promotions during one of the recent weekends as an example of this adjustment.
Despite facing several years of struggle due to US sanctions, Huawei saw a surge in sales following the release of its Mate 60 series in August.
