Huawei effect: Apple's iPhone sales in China drop by 19%
Apple's iPhone sales in China have experienced a significant 19% drop at the start of the year, marking the tech giant's most challenging period since the onset of the COVID-19 pandemic in 2020. According to a study by Counterpoint Research, Apple's share of China's smartphone market has shrunk to 15.7% in Q1 2024, down from 19.7% in the previous year. The primary cause for this decline is attributed to stiff competition from local rivals Huawei and Vivo.
Apple's sales were subdued during the quarter
Huawei has seen a nearly 70% increase in smartphone sales following the launch of its Mate 60 Pro series. Its market share increased from 9.3% to 15.5% year-over-year. This surge has pushed Apple to third place in market share behind Chinese manufacturers Vivo and HONOR in Q1 2024. "Apple's sales were subdued during the quarter as Huawei's comeback has directly impacted Apple in the premium segment," stated Lam, a senior research analyst at Counterpoint Research.
Apple could regain momentum in Q2 2024
Despite the decline, there are indications that iPhone sales could rebound. Lam suggests that introducing new color options and implementing aggressive sales strategies could help Apple regain momentum in Q2 2024. "We are waiting to see what its AI features will offer come WWDC in June," Lam said, hinting at potential for substantial long-term growth. This comes as Vivo claims the top spot with a market share of 17.5%, followed by HONOR at 16.1%, and then Apple.
