- Apple’s iPhone sales in China plunged 24% year-over-year in the first 6 weeks of 2024, facing tough competition from Chinese smartphone makers like a resurgent Huawei.
- Huawei is making a comeback, winning back customers who had switched to iPhones a couple years ago. Other Chinese brands like Oppo, Vivo and Xiaomi also declined less than Apple.
- Apple faces significant challenges in China from intense competition and trends adding pressure, along with abnormally high iPhone sales in January 2023 compared to 2024 due to supply chain shifts.
Apple’s iPhone sales have dropped significantly in China during the first six weeks of 2024, facing tough competition from local smartphone makers like Huawei, according to a new report by Counterpoint Research.
iPhone Sales in China Down 24%
The analyst firm said in a note on Tuesday that iPhone sales in China plunged 24% year-over-year during the six-week period from late January to early March. This decline came as Apple battled against stiff competition from major Chinese smartphone companies.
Resurgence of Huawei Hurts Apple
Apple came under particular pressure from Chinese tech giant Huawei, whose consumer business is experiencing a revival in China after the successful launch of its Mate 60 smartphone.
Huawei is seeing early signs of a comeback as it tries to win back customers who had switched to iPhones a couple of years ago, according to Neil Shah, an analyst at Counterpoint Research. “Huawei is making a comeback, trying to win back the defectors to iPhone from a couple of years ago,” Shah told CNBC.
Other Chinese Smartphone Makers Also Hurt Apple
In addition to Huawei, other major Chinese smartphone makers like Oppo, Vivo and Xiaomi also logged smartphone shipment declines. However, their drops were less pronounced than Apple’s plunge.
According to Counterpoint Research, Oppo’s shipments fell 29% year-over-year, while Vivo and Xiaomi saw declines of 15% and 7% respectively.
Tough Environment in China Challenging Apple
Apple faces significant headwinds in the key China market from intense competition as well as other trends adding pressure. The company also had abnormally high iPhone sales in January 2023 compared to 2024, partially due to supply chain shifts from late 2022 manufacturing issues.
Overall, Apple is confronting a difficult environment in China with local smartphone rivals like a resurgent Huawei chipping away at iPhone sales.
