Apple experienced a notable decline in iPhone sales within the first six weeks of this year, resulting in the loss of its title as China’s leading smartphone maker to a local competitor.
All About iPhone Sales Decline
According to data from Counterpoint Research, iPhone sales plummeted by 24 percent causing Apple to slip to fourth place among smartphone manufacturers in the country. Vivo claimed the top position driven by its strong performance in the budget segment of the market.
The decrease in sales occurred even though both Apple and Vivo sold phones overall showing a 7 percent drop in the smartphone market affected by nationwide deflation. On the other hand, Huawei experienced a rise in market share climbing from 9.4 percent to 16.5 percent mainly due to the popularity of its locally-made Mate 60 series. Counterpoint data indicated that Apple’s market share declined to 15.7 percent from 19 percent compared to a year ago. Analysts predict growth in the first quarter of 2024 due to restrained consumer spending and limited new product releases.
Various factors contributed to Apple’s iPhone struggles during this period as mentioned by Counterpoint analysts. Senior Analyst Mengmeng Zhang pointed out competition at the end from Huawei’s resurgence and pricing pressures from rivals like OPPO, Vivo, and Xiaomi in the mid-range segment. Despite the quality of the iPhone 15 its lack of upgrades compared to models caused consumers to stick with their older iPhones.
In response to slowing sales Apple retailers in China have increasingly turned to discounts to clear out iPhone 15 stock amid a downturn in the market. These discounts came after price cuts on Apple’s website prior to the Lunar New Year holiday in February. In the quarter ending in December Apple experienced a 13% drop in sales in China reaching $20.8 billion, which was below the anticipated $23.5 billion by analysts. Expectations for growth in 2024 are being approached cautiously due, to the market environment.
FAQs
Why did iPhone sales drop in China during early 2024?
The decline in iPhone sales can be attributed to increased competition from local brands like Huawei and aggressive pricing from competitors.
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How did Huawei increase its market share despite overall smartphone sales decline?
Huawei’s market share growth was fueled by the popularity of its Mate 60 series, offering innovative features at competitive prices.
