In the initial six weeks of 2024, Apple witnessed a 24% year-on-year decline in iPhone sales in China, as per the findings of research firm Counterpoint.
This drop is attributed to heightened competition from domestic rivals like Huawei. Huawei, Apple’s primary competitor in China’s premium smartphone segment, experienced a notable surge with a 64% increase in unit sales during the same period, leading to Apple slipping to fourth place with a 15.7% market share.
In contrast, Huawei climbed to second place with a 16.5% market share, compared to 9.4% the previous year. The overall Chinese smartphone market contracted by 7%, according to the report.
Counterpoint’s senior analyst Mengmeng Zhang noted that Apple faced strong competition at the high end from Huawei while encountering pricing pressures from other domestic players like OPPO, Vivo, and Xiaomi.
To counter this trend, Apple initiated subsidies of up to 1,300 yuan ($180.68) for specific iPhone models through flagship stores on Tmall, Alibaba’s major marketplace. This move followed Apple’s earlier strategy of offering discounts of up to 500 yuan on its official sites in the preceding month.
Huawei’s resurgence in premium smartphone sales was attributed to the success of its Mate 60 series, launched in August. Despite facing challenges due to U.S. restrictions on key components, Huawei has managed to regain momentum in the Chinese market.
Honor, Huawei’s smartphone brand spun off in 2020, was the only other top-five brand to witness a unit sales increase in the initial weeks of the year, recording a 2% growth. On the other hand, Chinese brands Vivo, Xiaomi, and Oppo experienced declines of 15%, 7%, and 29%, respectively.
