iPhone sales drop by 30% in China amid tough competition
iPhone sales drop by 30% in China amid tough competition (Getty Images)
iPhone sales in China went down by 30% in the first week of 2024, showing that Apple is facing more competition from Chinese companies like Huawei, according to analysts from Jefferies, Reuters reports.
The overall number of smartphones shipped in China double-dropped, mainly because of Apple's lower sales.
Jefferies analysts found that even though Apple offered discounts on various iPhone models on Chinese online marketplaces, people still didn't buy as much. For example, the prices of the iPhone 15 Pro and iPhone 15 Pro Max were reduced by 16% on Pinduoduo, a Chinese online retailer.
Sales decline in 2023
The 30% drop in Apple's sales is worse than the 3% decline they experienced in the entire year of 2023 in China. Jefferies says that this decline is due to the tough competition from Chinese companies, especially Huawei, which released its Mate 60 series of phones in August 2023.
Huawei's share in the Chinese smartphone market went up by about 6% in the last quarter of 2023. Analysts predict that Apple will continue to face tough competition in 2024, with their sales going down even more, while Huawei is expected to sell more phones and gain more market share.
"Specifically, they estimate that Huawei will ship approximately 64 million smartphones worldwide in 2024 - up substantially from the estimated less than 35 million shipped in 2023," the media states.
Despite challenges faced by Apple, the Chinese smartphone market is expected to improve in the coming months, with research firm IDC predicting an increase in sales in the last quarter of 2024 after ten consecutive quarters of declining shipments.
We also reported the top 5 most anticipated Apple devices set to release in 2024 and the Apple Watch sales issue in the U.S.
