Apple States Robust iPhone Demand in China

US tech giant Apple Inc. saw robust demand for its flagship iPhone in China, attempting to alleviate investors’ concerns that it is falling behind the country’s smartphone companies like Huawei Technologies Co. Ltd.

Apple’s China sales fell 2.5%, although it cited lackluster sales of the Mac computer and iPad as the reason for the slump.

Sales were up after considering foreign-exchange rates, according to Apple chief executive Tim Cook.

For its fiscal 2023, the iPhone maker has seen its sales in China drop in three of the four quarters.

Still, Cook said they were able to set a quarterly record for iPhone in the fourth quarter in mainland China, adding that they had “four out of the top five best-selling smartphones in urban China.”

Cook also observed that the company might have acquired a market share in the country in the three months ending September 30 despite the potential weakness in the overall smartphone market.

Cupertino-based Apple expects more of its flagship smartphone to be sold in the holiday quarter, even with this year’s quarter having one less week of sales than last year.

China Smartphone Market May Gather Pace in Q4

A Singapore-based research firm expected China’s total smartphone sales to stumble by 3% in the fourth quarter from a year ago on fewer smartphone purchases due to an unstable recovery in the world’s second-largest economy.

The pace of the slide, however, was slower compared to the past quarters, signaling some easing in the market’s decline. iPhone sales in China were down 6%, according to the research group.

Huawei, on the other hand, is expected to post strong smartphone sales at home in the fourth quarter. The company’s Mate 60 Pro has garnered significant attention due to its locally built advanced chip, despite being struck with US sanctions.

Analysts maintained a positive perspective on Apple’s demand outlook in China over the quarter as there was potential for the recovery in the broader smartphone market gaining momentum.

Supporting demand was the marked-down iPhone 15 models being sold in the run-up to the Singles’ Day shopping season.

Apple, from time to time, lets partner merchants in the country offer discounts to strengthen demand, but these vendors are also taking part in a ‘value for money’ competition to gain customers.

In the last two weeks, major Chinese online retailers have discounted the iPhone 15 series to as low as CN¥1,501 ($205.14).