Apple iPhone Sales Plunge 24% in China

A recent report from Counterpoint Research indicates a significant downturn in Apple iPhone sales in China during the initial six weeks of 2024.

The study, released on Tuesday, highlights a substantial 24% decline in iPhone sales during this period.

The competitive landscape intensified for Apple as it faced strong opposition from local smartphone manufacturers such as Huawei, Oppo, Vivo, and Xiaomi.

In response to this trend, Apple shares experienced a more than 2% decrease in early U.S. trading.

The primary force behind Apple's sales slump in China appears to be the resurgence of Huawei, a prominent Chinese tech giant.

Huawei's consumer business, particularly boosted by the launch of its Mate 60 smartphone, has been putting considerable pressure on Apple's market share.

While other Chinese smartphone companies also witnessed declines in unit sales over the same six-week period, their decreases were less pronounced compared to Apple.

Oppo faced a 29% year-on-year drop in smartphone shipments, while Vivo and Xiaomi recorded declines of 15% and 7%, respectively, according to Counterpoint Research.

The standout performers during this period were Huawei and its spinoff brand, Honor, which emerged in 2020 due to U.S. sanctions.

Huawei's smartphone unit shipments surged by an impressive 64% year over year, while Honor's handset shipments saw a more modest increase of 2%.

Apple's challenges in the crucial Chinese market are compounded by various factors, including fierce competition from local players and the reinvigorated presence of Huawei.

Notably, Huawei's Mate 60, equipped with 5G connectivity, has marked the company's early signs of revival.

This development comes as a surprise considering the U.S. government's sanctions in 2019 and 2020 severely limiting Huawei's access to key chips and technology essential for 5G mobile internet.

Once a dominant force in the global smartphone market, Huawei's competitiveness waned as Apple gained ground, particularly after Huawei's devices lacked 5G capabilities and cutting-edge semiconductors.

However, the Mate 60 appears to be a pivotal moment for Huawei as it strives to regain prominence in the Chinese high-end smartphone segment.