Apple’s iPhone sales in China have witnessed a significant decline of 24% in the first six weeks of 2024, according to research firm Counterpoint. This decline can be attributed to the intensified competition from domestic smartphone manufacturers, particularly Huawei. Huawei, Apple’s chief competitor in the premium smartphone segment in China, witnessed a remarkable increase in unit sales by 64% during the same period. This surge in Huawei’s popularity has raised concerns about Apple’s ability to sustain its market share in China.
Counterpoint’s report reveals that Apple’s share of the Chinese smartphone market has dropped to 15.7%, placing the company in fourth place. This is a significant decline compared to the second-place position it held in the year-ago period, where it had a 19% market share. On the other hand, Huawei has risen to second place, with its market share expanding from 9.4% to 16.5%. The overall smartphone market in China has also experienced a decline of 7%.
Apple faced stiff competition in the high-end segment from a resurgent Huawei, while also encountering aggressive pricing strategies from domestic brands such as OPPO, Vivo, and Xiaomi. This competitive landscape has squeezed Apple’s market position and impacted its sales performance in China. In response, Apple has started subsidising certain iPhone models and offering discounts to attract customers.
RTM Watch’s Take
The decline in Apple’s iPhone sales in China and the surge in Huawei’s popularity highlight the challenges faced by Apple in maintaining its market share in the country. The intense competition from domestic rivals, coupled with aggressive pricing strategies, has put pressure on Apple’s position in the Chinese smartphone market. To regain momentum, Apple needs to focus on innovation, pricing strategies, and strengthening its brand appeal to Chinese consumers.
