In a recent report by Counterpoint, it was revealed that Apple experienced a significant drop in iPhone sales in China, plummeting by 24% year-on-year during the initial six weeks of 2024. This decline comes as the tech giant faces intensified competition from domestic rivals, notably Huawei.
Counterpoint’s research indicated a contrasting trend for Huawei, which witnessed a remarkable 64% increase in unit sales during the same period. This surge in Huawei’s popularity poses challenges for Apple in the Chinese market, particularly in the premium smartphone segment.
The data raises concerns about a potential slowdown in demand for Apple products, as the company’s revenue forecast for the current quarter fell $6 billion below Wall Street expectations. Following this revelation, shares of Apple experienced a 2.8% decline and have shown a 12% decrease in value since the beginning of the year, lagging behind other major tech players in the United States.
Counterpoint’s report also highlighted a significant shift in market dynamics, with Apple’s share of the Chinese smartphone market dropping to 15.7%, placing it in fourth position. In contrast, Huawei ascended to the second position, expanding its market share from 9.4% to 16.5% year-on-year. Overall, the smartphone market in China experienced a 7% contraction during this period.
To counter the downward trend, Apple initiated subsidies for certain iPhone models, offering discounts of up to CNY 1,300 ($180.68) through flagship stores on Tmall, Alibaba’s major marketplace platform. This move followed earlier discounts of up to CNY 500 offered on official sites last month.
Meanwhile, Huawei’s resurgence in premium smartphone sales gained momentum with the release of its Mate 60 series in August. Despite previous struggles due to U.S. export restrictions on critical components, Huawei has managed to reclaim its foothold in the market.
Additionally, Honor, the smartphone brand separated from Huawei in 2020, witnessed a notable increase of 2% in unit sales during the initial six weeks of the year. However, other Chinese brands such as Vivo, Xiaomi, and Oppo experienced declines of 15%, 7%, and 29% respectively, further emphasizing the shifting landscape of the Chinese smartphone market.
