Apple iPhone sales in China plummet 24% as Huawei smartphone sales surge
Apple Inc. is facing a challenging start to the year as its iPhone sales in China dropped by a significant 24% year-over-year in the first six weeks, according to a report by research firm Counterpoint. This decline can mainly be attributed to tough competition in the market, particularly from China’s Huawei, which experienced a notable 64% surge in smartphone sales during the same period compared to the previous year.
Counterpoint’s senior analyst, Mengmeng Zhang, stated that the drop in sales for Apple can be attributed to intense competition in the high-end segment from Huawei, as well as competitive pricing from OPPO, vivo, and Xiaomi. Zhang added that although the iPhone 15 is a great device, it lacks significant upgrades from the previous version, which prompts consumers to hold onto older-generation iPhones for longer.
As a result of these challenges, Apple’s share of the Chinese smartphone market has dwindled to 15.7%, putting the company in fourth place. This is a decline from the second-place position it held a year ago when it commanded a 19% market share.
Apple CEO Tim Cook, however, remains positive about the company’s overall iPhone growth, highlighting that they experienced strong double-digit growth in emerging markets outside of China. Cook acknowledged that China continues to be the most competitive smartphone market in the world.
This news has negatively impacted Apple’s stock, with shares dropping by 3% on Tuesday. So far this year, the company’s stock has declined by about 10%, underperforming other major tech companies in the United States.
Despite the challenges in China, Apple managed to surpass Wall Street estimates for sales and profits last quarter, thanks to the growth of its iPhone business worldwide. Cook expressed optimism about the iPhone’s performance in emerging markets and emphasized that the device is performing well in those regions.
Sources:
– Counterpoint
– Reuters
Analyst comment
Negative news. The significant decline in Apple’s iPhone sales in China and the surge in Huawei’s smartphone sales indicate intense competition in the market. Apple’s market share has dropped to fourth place. The news has negatively impacted Apple’s stock, with shares dropping by 3%. The market outlook for Apple in China is challenging, but the company remains optimistic about overall iPhone growth and performance in emerging markets.
