In a recent report by Counterpoint Research, it was revealed that the sales of Apple’s iPhone in China significantly dropped by 24% in the first six weeks of 2024. This decline was attributed to stiff competition from local smartphone manufacturers such as Huawei, Oppo, Vivo, and Xiaomi. Apple’s shares also saw a decrease of more than 2% in early trading in the U.S. market, reflecting the challenges faced by the tech giant in the Chinese market.
One of the notable trends highlighted in the report was the resurgence of Huawei in the Chinese market. The launch of Huawei’s Mate 60 smartphone led to a significant increase in the company’s consumer business, with smartphone shipments rising by 64% year over year. Additionally, Huawei’s spinoff brand, Honor, also experienced growth with a 2% increase in handset shipments. These figures indicate a shift in consumer preferences towards local brands in China, posing a direct threat to Apple’s market share.
Apple is currently facing a challenging environment in China, exacerbated by intense competition from local smartphone makers such as Huawei. The launch of the Mate 60 by Huawei, equipped with 5G connectivity, posed a significant challenge to Apple’s dominance in the high-end device segment. With Huawei gaining momentum in the market, Apple has witnessed a decline in sales as consumers flock towards the new offerings from the Chinese tech giant.
Another factor that contributed to Apple’s decline in sales was the disruptions in its supply chain due to Covid-19 lockdowns in China. The supply chain experienced significant delays in late 2022, leading to higher ‘sell-through’ in January 2023 compared to 2024. This disruption affected Apple’s ability to meet consumer demand and maintain a competitive edge in the market.
Looking ahead, Apple will need to address the challenges posed by local competitors in the Chinese market to regain its lost market share. The resurgence of Huawei and the growing popularity of other local brands signal a shift in consumer preferences, with an increasing focus on innovation and technology. Apple’s ability to adapt to these changing dynamics and introduce competitive offerings will determine its success in the highly competitive Chinese smartphone market.
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