In the inaugural week of 2024, Apple has encountered a significant 30% reduction in iPhone sales within China, signaling a worrying trend for the tech giant in one of its key markets.
Discount Strategies Fail to Spur Demand
Even after substantial price reductions, including a 16% cut on flagship models such as the iPhone 15 Pro and iPhone 15 Pro Max, the downward trend in sales continues unchecked. This persistent slump transpires despite Apple’s efforts to stimulate demand through discounts offered across its product range.
Android Competition and Market Share Shifts
The sales decline is indicative of increased competition from Android manufacturers, notably the Chinese firm Huawei, which has successfully introduced its Mate 60 series, intensifying the market rivalry.
Apple’s dwindling sales in China, following a 3% annual drop in 2023, coincide with a slight reduction in market share, as reported by Jefferies analysts. In stark contrast, Huawei boasted a 6% increase in the Chinese smartphone market share during the last quarter of the previous year.
Financial observers now anticipate that Apple will face escalated competitive pressures from Chinese brands throughout 2024, predicting a continuous drop in shipment volumes while Huawei’s market share climbs.
Huawei’s Mate 60 series has been credited with the company’s resurgence in the high-end smartphone space, projecting an impressive increase in global shipments from 35 million in 2023 to a forecasted 64 million units in the current year.
