US tech titan Apple Inc. saw its iPhone sales in key market China plummet in the first six weeks of this year, reflecting weak demand for the company’s flagship smartphone and indicating a more competitive environment due to the strength of local brands.
Data from a Hong Kong-headquartered tech analyst firm showed that Apple’s iPhone sales in the world’s largest smartphone market declined 24% in the period, as intensifying competition from Chinese rivals, like Huawei Technologies Co. Ltd., weighed on the Cupertino-based company.
Additionally, the smartphone maker is struggling to shore up demand in the country’s broader mobile market, which is currently down 7%. Apple has attempted to drive mobile demand in China by offering discounts, but such a move seemed not enough.
The sales slide also created uncertainty over the firm’s valuation and strategic position.
Apple Faces Stiff Competition from Chinese Rivals
The fall came as Apple was particularly pressured by Huawei Technologies Co. Ltd., facing tough competition for high-end devices from the Chinese smartphone giant.
In the first six weeks of 2024, Huawei posted a sales increase of 64%, and it was one of the best-performing smartphone brands alongside its spinoff brand Honor, which it sold in November 2020 due to US restrictions.
Shenzhen-based Huawei is seeing a recovery at home following the launch of its Mate 60 series and difficulties in obtaining parts for months because of chip and tech sanctions by Washington.
While the iPhone 15 is an excellent device, senior analyst Mengmeng Zhang said the phone provided no major updates from the iPhone 14, prompting consumers to keep their older iPhones for the time being.
Other major Chinese rivals also posted a slump in their unit sales during the period, but the drops were not as severe as Apple’s.
Oppo’s smartphone deliveries slipped 29% year on year, while Vivo Communication Technology Co. Ltd. stumbled 15%, and Xiaomi Corp.’s shipments plunged 7%.
Stiff competition in the Chinese market is a significant subject of concern for Apple, considering its iPhone sales in the country reached $20.8 billion in the previous year, representing a considerable portion of its overall phone sales of $69.7 billion.
The company also ranked down among China’s largest smartphone vendors in 2024, with its Chinese smartphone market share falling 15.7% from 19.0% the year earlier, placing it fourth, while Huawei took its 2023 standing in second.
