Apple faced a significant setback in China as iPhone sales plummeted by 30% in the first week of 2024. According to analysts at Jefferies, this decline can be attributed to intense competition from domestic rivals, especially Huawei. Jefferies’ brokerage note […]
Apple faced a significant setback in China as iPhone sales plummeted by 30% in the first week of 2024. According to analysts at Jefferies, this decline can be attributed to intense competition from domestic rivals, especially Huawei.
Jefferies’ brokerage note highlights that Apple’s sales slump was the main cause behind the double-digit drop in smartphone shipments during the first week in China. On the other hand, other Android brands and Huawei experienced relatively stable growth compared to the previous year during the same period.
Despite aggressively reducing the prices of several iPhone models on major Chinese e-commerce platforms, Apple failed to maintain high sales levels. For instance, the prices of iPhone 15 Pro and iPhone 15 Pro Max were slashed by 16% on the Pinduoduo platform.
This 30% decline signifies an acceleration compared to the previous year when Apple witnessed a 3% drop in its third-largest market. Jefferies added that the 3% dip in 2023 resulted in a 0.4% decrease in Apple’s market share.
According to Jefferies analysts, Apple’s sales decline is primarily due to the competition posed by Chinese rivals, especially Huawei, which launched its Mate 60 series of smartphones in August last year.
Their forecast suggests that Apple will continue to face growing competitive pressure from domestic rivals throughout 2024. Conversely, Huawei is expected to further capture a larger market share, with an estimated worldwide shipment of around 64 million smartphones in 2024 compared to 35 million devices delivered in 2023.
While the Chinese smartphone market has endured a multi-year decline, analysts anticipate a recovery in the fourth quarter, signaling growth in sales after ten consecutive quarters of shipment decline. A report from IDC supports this projection for the revival of smartphone sales in China.