Apple's iPhone Sales in China Experience a 24% Plunge as Huawei's Popularity Surges

Apple's iPhone sales in China have fallen by 24% year-on-year, while Huawei's unit sales have risen by 64% during the same period. Apple's share of the Chinese smartphone market has dropped to 15.7%, putting the company in fourth place. Huawei has risen to second place in the Chinese market, with a market share of 16.5%.

Credit: REUTERS

In a surprising turn of events, Apple's iPhone sales in China have taken a significant hit, falling 24% year-on-year during the first six weeks of 2024. This decline comes as Huawei, one of the U.S. tech giant's chief competitors in the Chinese market, saw a remarkable 64% increase in unit sales during the same period, according to a report by research firm Counterpoint.

The sharp decline in iPhone sales has raised concerns about a potential slowdown in demand for Apple products. In fact, the company's revenue forecast for the current quarter falls $6 billion short of Wall Street expectations. As a result, shares of the iPhone maker closed 2.8% lower on Tuesday and have already lost about 12% of their value this year, underperforming other major tech companies in the United States.

Counterpoint's report reveals that Apple's share of the Chinese smartphone market has dropped to 15.7%, placing the company in fourth place. This is a significant decrease from the second-place position it held in the same period last year, when it had a 19% market share. On the other hand, Huawei has risen to second place, with its market share expanding from 9.4% to 16.5% over the past year.

The overall smartphone market in China has also experienced a decline, shrinking by 7% according to the report. Counterpoint's senior analyst Mengmeng Zhang attributes Apple's struggles to fierce competition from Huawei at the high end of the market, as well as aggressive pricing from domestic brands such as OPPO, Vivo, and Xiaomi.

In an attempt to regain momentum, Apple has recently started subsidizing certain iPhone models by up to 1,300 yuan ($180.68) through flagship stores on Tmall, Alibaba's major marketplace platform. Last month, the company also offered discounts of up to 500 yuan on its official sites. However, it remains to be seen whether these measures will be enough to reverse the downward trend in sales.

Meanwhile, Huawei has experienced a resurgence in its premium smartphone sales since the release of its Mate 60 series in August. This comes after years of struggling with U.S. restrictions on the export of key components to the company. Additionally, Honor, the smartphone brand that was spun off from Huawei in 2020, was the only other top-five brand to see an increase in unit sales during the first six weeks of the year, with a modest 2% growth. Chinese brands Vivo, Xiaomi, and Oppo, on the other hand, witnessed declines of 15%, 7%, and 29%, respectively.

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• Apple's iPhone sales in China have fallen by 24% year-on-year, while Huawei's unit sales have risen by 64% during the same period.

• Apple's share of the Chinese smartphone market has dropped to 15.7%, putting the company in fourth place.

• Huawei has risen to second place in the Chinese market, with a market share of 16.5%.

Source: REUTERS