In the first six weeks of 2024, Apple experienced a significant setback in China, with iPhone sales falling 24 percent year-on-year, according to a report from research firm Counterpoint.
The decline comes at a time when the tech giant has faced increased competition from local rivals, notably Huawei.
Counterpoint’s findings reveal that Huawei, Apple’s main competitor in China’s premium smartphone market, saw a substantial 64 percent increase in unit sales over the same period.
As a result, Apple’s share of the Chinese smartphone market fell to 15.7 percent, giving the company fourth place.
This is a significant drop from the same period in 2023, when Apple held the second position with a 19 percent market share.
In contrast, Huawei rose to second place, increasing its market share from 9.4 percent to 16.5 percent during the year. The overall smartphone market in China also declined by 7 percent, further indicating a challenging situation.
Counterpoint senior analyst Mengmeng Zhang attributed Apple’s decline to fierce high-end competition from Huawei and aggressive pricing strategies from domestic rivals such as OPPO, Vivo and Xiaomi, which are putting pressure on Apple in the mid-range segment.
Responding to tough market conditions, Apple last week launched subsidies of up to 1,300 yuan ($180.68) on certain iPhone models through flagship stores on Tmall, Alibaba’s main marketplace.
The move follows previous discounts of up to 500 yuan offered on Apple’s official website in the previous month.
Huawei’s resurgence in premium smartphone sales has played a key role in the company’s upward trajectory.
The release of the Mate 60 series in August 2023 marked a turning point for Huawei, which has struggled for years with US restrictions on exporting key components.
Honor, the smartphone brand spun off from Huawei in 2020, stood out as the only other top five brand to post a rise in unit sales, up 2 percent.
On the contrary, Chinese brands Vivo, Xiaomi and Oppo recorded a decrease of 15 percent, 7 percent and 29 percent, respectively.
With the smartphone market in China undergoing shifts, it remains to be seen how Apple will adapt to the changing dynamics and fierce competition in the region.
