Apple’s Crisis: China iPhone Sales Plummet 30% – Is Recovery Possible?

China iPhone Sales Decline by 30%, Is Apple in Crisis?

A recent report by Jeffrey analysts reveals that iPhone sales within China have experienced a significant decline of 30% in the first week of 2024. This decrease in sales has had a considerable impact on the overall smartphone shipments, resulting in a double-digit decrease in the market.

Apple Faces Sales Decline while Huawei and Android Brands Remain Stable

According to Jeffrey analysts, while Apple has been grappling with declining sales, Huawei and other Android brands have managed to maintain stable sales levels during the same period. This contrast highlights the challenges Apple is currently facing in the Chinese market.

Apple’s Aggressive Price Reduction Efforts Fail to Boost Sales

Despite Apple’s efforts to stimulate sales through aggressive price reductions, iPhone sales within China continue to decline. Apple reduced the prices of its iPhone 15 and iPhone 15 Pro Max models by 16% on major online marketplaces in China. However, these price reductions have not been sufficient to reverse the downward trend.

Apple’s Declining iPhone Sales in China: A Cause for Concern

It is worth noting that Apple’s iPhone sales in China had already experienced a 3% decrease in 2023 compared to the previous year. This downward trajectory raises concerns about Apple’s market position within China.

Huawei’s Return and Its Impact on Apple’s Revenue

Jeffrey analysts attribute Apple’s significant decrease in revenue to Huawei’s return to the high-end smartphone market in August 2023. Huawei’s comeback had a direct impact on the Chinese smartphone market, prompting the Chinese government to implement measures to suppress the use of foreign smartphones.

As a result, Huawei’s market share in the Chinese smartphone market increased by approximately 6% in the fourth quarter of 2023. This growth further intensified the competition between Apple and Huawei.

Analysts Predict Apple’s Revenue Decline and Huawei’s Market Expansion

Jeffrey analysts foresee Apple facing continued competition pressure from Chinese companies, resulting in a double-digit decrease in revenue within China this year. On the other hand, Huawei is expected to maintain its upward trend and increase its market share in China.

Analysts predict that Huawei will ship around 64 million smartphones worldwide in 2024, a significant increase compared to the previous year’s 35 million units. This growth showcases Huawei’s resilience and potential for market expansion.

Outlook for the Chinese Smartphone Market

Despite the challenges faced by Apple, analysts anticipate a rebound in the Chinese smartphone market in 2024. IDC predicts a slight increase in Chinese smartphone shipments in the fourth quarter of 2023 compared to the previous year.

The dynamics of the Chinese smartphone market are expected to evolve as competition between Apple and Huawei intensifies. Observing how Apple overcomes these challenges and regains market share in China will be crucial in understanding the future of the Chinese smartphone market.

Sources: Hankook Economy