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- Apple’s iPhone sales in China plummeted 24% in the first 6 weeks of 2024.
- Domestic brands like vivo and OPPO are thriving in the budget segment.
- HUAWEI, Apple’s rival, saw a 64% increase in sales thanks to their Mate 60 Pro and patriotic buying.
The tech titan known for its loyal fanbase is facing a different story in the East. Apple’s iPhone sales in China, the world’s biggest smartphone market, have taken a nosedive of 24% in the first six weeks of 2024, according to Counterpoint Research. This decline comes amidst a broader 7% slump in the overall Chinese smartphone market.
While the industry feels the pinch, domestic brands like vivo and OPPO are seizing the opportunity, leading the charge in the budget segment. Apple, on the other hand, hasn’t shown the same level of agility. Even with rare discounts and price cuts of up to $180 from online resellers, the company’s market share has slipped below 16%, falling from 19%. This slump even extends to its partners, like iPhone assembly giant Hon Hai, whose sales have dipped 18% in the first two months of the year.
Meanwhile, Apple’s arch-rival in the premium segment, HUAWEI, is experiencing a remarkable resurgence. Their homegrown Mate 60 Pro devices have fueled a 64% surge in unit sales, propelled by a wave of patriotic buying. HUAWEI’s market share has jumped from 9.4% to a staggering 16.5%, painting a stark contrast to Apple’s struggles.
Adding fuel to the fire, aggressive pricing from domestic rivals like OPPO, vivo, and Xiaomi in the mid-range segment is further squeezing Apple’s market share. As analyst Mengmeng Zhang points out, the lack of significant upgrades in the iPhone 15 compared to previous models is making consumers comfortable keeping their older iPhones, further impacting sales.
While the reasons behind consumers holding onto their iPhones for longer are multifaceted, Apple’s challenges in China raise questions about potential ripple effects across the globe. However, a glimmer of hope remains. Apple’s latest earnings report displayed some resilience, with stronger iPhone sales during the holiday quarter and a return to revenue growth. Only time will tell if Apple can adapt and regain its footing in the ever-evolving Chinese market.
