Apple faces a 24% drop in iPhone sales in China, while Huawei sees a 64% surge, sparking concerns over market share and revenue. (AP)
In the initial six weeks of 2024, Apple witnessed a significant decline of 24% in iPhone sales within the Chinese market, a report from research firm Counterpoint revealed. The drop was attributed to heightened competition from local contenders like Huawei.
Contrarily, Huawei, Apple's primary rival in premium smartphone sales in China, experienced a notable surge with a 64% increase in unit sales during the same period, as stated in the report.
This downturn in iPhone sales raises concerns about a potential slowdown in demand for Apple, especially considering that its revenue forecast for the current quarter fell short by $6 billion compared to Wall Street's projections.
Reflecting these concerns, Apple's stock closed nearly 3% lower on Tuesday, contributing to a year-to-date decline of about 12%, a performance trailing behind other major tech companies in the US.
According to Counterpoint's findings, Apple's share of the Chinese smartphone market dwindled to 15.7%, securing fourth place, a significant drop from its second-place position a year earlier when it held a 19% market share. Conversely, Huawei climbed to second place, expanding its market share from 9.4% to 16.5% over the year. The overall Chinese smartphone market experienced a 7% contraction during this period.
Counterpoint's senior analyst, Mengmeng Zhang, noted that Apple faced intense competition from Huawei at the high end of the market while also encountering pricing pressure from competitors like OPPO, Vivo, and Xiaomi.
In an attempt to boost sales, Apple initiated subsidies of up to 1,300 yuan ($180.68) on select iPhone models through flagship stores on Tmall, Alibaba's prominent online marketplace. This move follows previous discounts of up to 500 yuan offered on its official sites last month.
Huawei's resurgence in premium smartphone sales can be attributed to the successful launch of its Mate 60 series in August, marking a turnaround after encountering challenges due to US restrictions on vital components exports to the company.
Additionally, Honor, the smartphone brand separated from Huawei in 2020, saw a 2% increase in unit sales during the first six weeks of the year, making it the only other top-five brand to experience growth. On the other hand, Chinese brands Vivo, Xiaomi, and Oppo witnessed declines of 15%, 7%, and 29%, respectively, during the same period.
