In the initial six weeks of 2024, iPhone sales in China saw a 24% year-on-year decline, as reported by Counterpoint Research. This downturn occurs amidst intensifying competition from local brands, notably Huawei, which witnessed a 64% surge in its premium smartphone sales during the same timeframe.
Such a trend raises concerns over potential demand deceleration for the U.S.-based tech leader, especially after its quarterly revenue projection fell short of Wall Street’s expectations by $6 billion.
Before the market opened on Tuesday, Apple shares dropped 2.2% and have diminished in value by approximately 10% throughout the year, lagging behind its major tech counterparts in the U.S.
Apple’s market share in China’s smartphone sector decreased to 15.7%, positioning it fourth, a decline from the previous year’s second place with a 19% share. In contrast, Huawei climbed second, boosting its market share to 16.5% from 9.4% in a market that contracted by 7% overall.
Counterpoint highlighted that Apple encountered formidable competition from a revitalized Huawei at the premium end, alongside pressure from aggressive pricing by OPPO, Vivo, and Xiaomi in the mid-range segment, according to Mengmeng Zhang, a senior analyst at Counterpoint.
To combat this, Apple initiated subsidies on select iPhone models up to 1,300 yuan ($180.68) last week in its Tmall flagship stores, following discounts of up to 500 yuan offered on its official websites the preceding month.
After enduring years of challenges due to U.S. export restrictions on essential components, Huawei has made a notable comeback in the premium smartphone market with its Mate 60 series launched in August.
Honor, separated from Huawei in 2020, emerged as the sole other top-five brand to record an increase in unit sales during this period, with a 2% rise. Meanwhile, Vivo, Xiaomi, and Oppo experienced sales declines of 15%, 7%, and 29%, respectively.
