Apple iPhone Sales Dip 24% in China, Huawei Surges 64% Amid Market Shakeup

Apple’s iPhone, a product that has firmly positioned itself as an aspirational symbol in the world of technology and connectivity, seems to be weathering rocky seas particularly in China. 

According to Counterpoint, a globally acclaimed research firm, the trademark device experienced a depreciation of 24% in sales during the first six weeks of 2024 compared to the same timeframe in the previous year.

Interestingly, this decline hasn’t been mirrored by all players in the tech industry. While Apple struggles, local competitor Huawei is not just staying afloat, but sailing ahead with an impressive 64% boost in sales within the same period.

Diverging Trends

A resurgence in purchases of Huawei’s high-end devices and aggressive pricing strategies employed by Oppo, Vivo, and Xiaomi seems to have left Apple in a precarious market position. 

“Apple was squeezed in the middle,” Mengmeng Zhang, a representative of Counterpoint Research, commented.

In what seems like a double-whammy for Apple, the overall Chinese smartphone market, one of their biggest arenas, also registered a shrinkage of 7% in sales. The Chinese tech market is witnessing a period of intense flux and competition.

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The Huawei Surprise

Huawei’s success comes as a surprise, considering its recent struggle with US sanctions. The company’s launch of the Mate 60 series of 5G smartphones in August seems to have marked a turning point. 

This is significant because it signifies the company’s ability to overcome the significant hurdle of limited access to crucial chips and 5G mobile internet technology.

Market Shares Shift

As per Counterpoint’s report, Apple’s grip on the Chinese smartphone marketplace slipped from 19% last year to 15.7%, leading to its fall from the number two spot to the fourth. 

On the contrary, Huawei’s market share saw an increase from 9.4% in the previous year to 16.5%, helping it ascend to second place.

Also Read: China’s Car Sales Shift Down With January’s 14% MoM Decline

The Road Ahead

In response to this challenging period, Apple resorted to various measures such as offering discounts on its official site in China and through Alibaba’s platform Tmall. 

Despite these efforts, the reduction in sales is expected to leave a dent in Apple’s revenue, already under fire due to disappointing earnings from the last quarter. 

The company reported that sales in China were $20.82bn in 2023’s last quarter, a dip from $23.9bn compared to the year before.

As Apple’s shares witnessed a 2.8% fall in New York trade on Tuesday, the fluctuation underscores a heavier truth: As the dynamics of the tech market continue to evolve, giants like Apple will have to step up to maintain their reign in this ever-competitive industry.

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Drew Blankenship

Drew Blankenship is a cryptocurrency investor, family man, father and lifelong automotive enthusiast. He lives in North Carolina with his wife, daughter and their dog Enzo.