Big Trouble: iPhone Sales in China Continue Putting Apple Under PressureBig Trouble: iPhone Sales in China Continue Putting Apple Under Pressure

Indeed, according to a report by Jefferies analysts, Apple iPhone sales in China have suffered a considerable setback. It’s a significant claim that there was a staggering 30% decline in the first week of 2024. This reduction seems to be related to Apple’s competition from Chinese competitors such as Huawei.

It’s interesting to note that despite some very alluring discounts on different iPhone models offered by well-known Chinese online retailers, sales decreased. For example, the prominent e-commerce portal Pinduoduo offered a 16% price reduction on the iPhone 15 Pro and iPhone 15 Pro Max.

This fall is a significant departure from Apple’s 2023 sales experience, which witnessed a 3% decline in China sales over the course of the year. At the time, such loss corresponded to a mere 0.4% decline in their market share. However, this most recent 30% decline in only one week is even more severe.

Even with price reductions, it seems that Huawei and other Android companies are posing a serious threat to Apple in China. Given how big of a market this is for Apple, this is a little concerning.

According to Jefferies analysts, Apple’s sales decline is mostly due to intense competition from Chinese competitors, particularly Huawei, which launched its Mate 60 series of phones in August. Apple and Huawei have yet to remark on this.

The Mate 60 series represents Huawei’s return to the high-end smartphone market after battling with US restrictions that hindered its growth for quite some time.

According to the research, Huawei increased its share of the Chinese smartphone market by around 6% in the fourth quarter of 2023.

These experts believe Apple will face even more competition from domestic competitors in 2024. They estimate that Apple’s shipments would continue to decline dramatically this year, while Huawei’s market share will expand. It seems that they anticipate a difficult year for Apple in terms of maintaining its dominance in China’s smartphone industry.

Jefferies analysts think that Huawei is getting ready to send about 64 million smartphones around the world in 2024. And that’s a big increase from the less than 35 million they shipped in 2023.

After going down for a long time, the Chinese smartphone market looks like it’s about to rise again. Along with the people at IDC, other experts think that sales will go up in the fourth quarter compared to the same time last year. This prediction is especially important because exports have been going down for ten quarters in a row. That’s good news for the Chinese smartphone market after a long slump: it looks like things may be getting better.

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