Apple’s iPhone Sales in China Drop by 24% in 2024, Huawei Sees Surge: Report
In a surprising turn of events, Apple’s iPhone sales in China have plummeted by 24% in the first six weeks of 2024 compared to the previous year. This decline comes as the US tech giant faces fierce competition from local rivals, particularly Huawei. According to research firm Counterpoint, Huawei experienced a significant surge in sales, with a staggering 64% increase in its home market during the same period.
The decline in Apple’s sales can be attributed to several factors. Firstly, Huawei’s resurgence in the more expensive segment of the Chinese phone market has posed a formidable challenge for Apple. Additionally, aggressive pricing strategies from other local competitors such as Oppo, Vivo, and Xiaomi have further squeezed Apple’s position in the market.
China, being one of Apple’s largest markets, has also witnessed an overall decline of 7% in smartphone sales during this period, as reported by Counterpoint. This indicates a broader trend affecting the entire industry rather than just Apple alone.
Huawei’s success is particularly remarkable considering the challenges it has faced in recent years due to US sanctions. However, the release of its Mate 60 series of 5G smartphones in August proved to be a game-changer. Despite being cut off from crucial chips and technology required for 5G mobile internet, Huawei managed to capture the attention of Chinese consumers and regain its position in the market.
Interestingly, Honor, the smartphone brand spun off from Huawei in 2020, was the only other top-five brand to witness an increase in sales during this period. On the other hand, Vivo, Xiaomi, and Oppo experienced a decline in sales.
To counter the decline in demand, Apple took proactive measures by offering discounts on its official sites in China last month. Furthermore, it recently subsidized certain iPhone models through its flagship stores on Alibaba’s marketplace platform, Tmall. These efforts were aimed at enticing customers and boosting sales in a highly competitive market.
The slowdown in demand for Apple products in China could potentially impact the company’s revenue, which has already disappointed investors. In its latest earnings report, Apple revealed that sales in China amounted to $20.82 billion (£16.4 billion) in the last three months of 2023, down from $23.9 billion in the previous year. As a result, Apple shares experienced a 2.8% decline in New York trade on Tuesday.
The competition between Apple and Huawei in the Chinese market is undoubtedly intensifying. While Apple faces challenges from local rivals and pricing pressures, Huawei’s remarkable resurgence showcases its ability to adapt and thrive despite adversities. As the battle for dominance in China’s smartphone market continues, it remains to be seen how both companies will strategize and innovate to capture the attention of Chinese consumers.
