Shanghai, China – Sales of Apple’s iPhone in China have seen a significant decline of 24% in the first six weeks of 2024 compared to the previous year, according to research firm Counterpoint. This drop comes as the US tech giant faces intense competition from domestic rivals in the Chinese market.
During the same period, Huawei, a Chinese tech company, experienced a notable 64% increase in sales within its home market, as reported by Counterpoint. The competition from Huawei, along with aggressive pricing strategies from local brands like Oppo, Vivo, and Xiaomi, has put pressure on Apple in the highly competitive Chinese smartphone market.
Despite challenges and setbacks due to past US sanctions, Huawei managed to boost its sales after the release of its Mate 60 series of 5G smartphones in August. The unexpected success of Huawei, even when cut off from crucial chips and technology for 5G mobile internet, has reshaped the dynamics of the Chinese smartphone market.
In the midst of these changes, Apple has experienced a decline in its market share in China, dropping from 19% to 15.7% over the past year. The shift in market rankings has seen Apple fall from second place to fourth, while Huawei has risen to second place with a market share of 16.5%, up from 9.4% the previous year.
Despite the challenges, Vivo remains the top-selling smartphone brand in China, with a 15% drop in sales over the last year. Apple has made efforts to boost sales in China through discounts on its official sites and subsidizing certain iPhone models through flagship stores on Alibaba’s marketplace platform Tmall.
In the financial realm, Apple reported a decrease in sales revenue in China for the last three months of 2023, down from the previous year. This has also had an impact on the stock market, with Apple seeing a 2.8% decline in shares during New York trade on Tuesday. The shifting landscape in the Chinese smartphone market reflects not only changing consumer preferences but also the fierce competition among tech giants vying for market dominance in the region.