Apple is facing stiff competition in China from the domestic companies’ like Huawei and it is the same reason why the sales for Apple iPhone has dropped by 30% in the very first week of 2024.
iPhone Shipment Drops by 30% in Jan 2024 in China
As per the Jefferies analysts, despite the aggressive discounting of multiple iPhone models through major Chinese online marketplaces, the sales of iPhone fell in double numbers.
As per the reports, there was a 16% price reduction on the iPhone 15 Pro and iPhone 15 Pro Max on the e-commerce platform Pinduoduo in the first week of 2024.
As per Jefferies, the 30% drop in 2023 indicated a 3% YoY decline in the US company in its own third largest market. Jefferies said that the 3% decline in 2023 equated to a 0.4% decrease in Apple’s market share.
As per the analysis, Apple’s decline can be attributed to the launch of Mate 60 series of phones in August last year.
Previously there was U.S. sanctions on Huawei due to which its progress was stunted, but now the Mate 60 line has marked as its comeback.
Rise of Local Chinese Players
As per the note, the share of Huawei in the Chinese smartphone market rose by 6% in the final quarter of 2023.
The year 2024 will not be any different as this year too Apple is likely to face the heat from the domestic rivals.
As per the forecast and predictions, the shipment volume of the phone shall continue to decline in the double digits in 2024. On the other side, Huawei is expected to increase the market share.
Notably, Huawei shipped less than 35 million phones in 2023 and as per the estimates, this year the number could go up to 64 million.
After a dry season of ten consecutive quarters of falling shipments, for the Chinese smartphone market, light is around the corner since the space is poised to rebound as per the analysts.
