Apple iPhone sales plunge 24% in China as Huawei resurges, report states

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Apple iPhone sales plunge 24% in China

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Sales of Apple’s iPhone plunged in China in the very first 6 weeks of 2024, according to a Counterpoint Research report.

The expert company stated in a note Tuesday that iPhone sales dropped 24% in the duration, as Apple dealt with stiff competitors from regional smart device companies like Huawei, Oppo, Vivo and Xiaomi.

Apple shares were down more than 2% in early trading in the U.S.

Apple came under specific pressure from Chinese tech giant Huawei, whose customer organization is experiencing a revival in China after the launch of its Mate 60 smart device.

Several competitor Chinese smart device business likewise logged drops in their system sales in the six-week duration, however the decreases were less noticable than that of Apple.

Oppo’s smart device deliveries fell 29% year on year, while Vivo and Xiaomi logged decreases of 15% and 7%, respectively, according to Counterpoint Research.

The best-performing smart device brand names for the very first 6 weeks were Huawei and its spinoff Honor, which branched off of the tech giant in 2020 as an outcome of U.S. sanctions.

Huawei smart device system deliveries increased 64% year over year in the very first 6 weeks of 2024, according to CounterpointResearch Shipments of Honor handsets, on the other hand, included 2%.

Apple is dealing with a hard environment in its essential market,China Several significant patterns are including pressure, not least of which is extreme competitors from regional Chinese smart device makers– consisting of a resurging Huawei.

Last year, Huawei released a mobile phone called the Mate 60, which had 5G connection. That was a significant surprise to the world, as the U.S. federal government hit Huawei with various sanctions in 2019 and 2020, sufficing off from essential chips and innovation needed for 5G mobile web.

Once the world’s biggest smart device gamer by sale volume, Huawei was truly the only significant opposition to Apple in China when it concerned high-end gadgets. Customers gathered to iPhones, as soon as Huawei’s phones lost their competitiveness due to the absence of 5G and no innovative semiconductors.

Huawei is seeing the early indications of a revival with the Mate 60.

“Huawei is making a come back trying to win back the defectors to iPhone from a couple of years ago,” Neil Shah, expert at Counterpoint Research, informed CNBC.

“There is some erosion for Apple but more so it’s other non-Apple brands in the premium segment also feeling the heat from Huawei.”

“Apple also had abnormally higher ‘sell-through’ in January 2023 vs. 2024 as the supply shifted to January after the China factory debacle in the fourth quarter of 2022,” Shah included.

Apple’s supply chain experienced significant disturbances in late 2022 due to Covid-19 lockdowns in China.

— CNBC’s Arjun Kharpal added to this report.

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