• Apple’s sales in China plunged 24%^[1] as it faces increasing competition from local smartphone companies
• Several Chinese manufacturers also experienced reductions in their sales, although these drops were not as severe as Apple’s

China’s weak consumer and overall weakening economy could be seen as the main culprits for Apple’s sales declines in the second-largest economy.

In the initial 6 weeks of 2024, Apple’s iPhone sales significantly declined in China^[2].

The firm revealed on Tuesday that it saw a 24% drop in sales during this period, attributing the slump to the fierce rivalry from Chinese smartphone manufacturers such as Huawei, Oppo, Vivo, and Xiaomi.

Apple is rapidly losing market share in Greater China, where it collects roughly 18%^[3] of its revenue. 

Following this report, Apple’s stock value dipped over 2%^[4] yesterday during early trading sessions in the U.S.

Apple’s market share in China has decreased to approximately 16%, down from around 19%^[5] last year. In an effort to boost sales there, Apple offered uncommon discounts on its online store in January.

Apple offers premium products, while its competitors are offering products at a lower price point, which could be another reason why Apple is losing market share.

In addition, the overall smartphone market was down 7% in China, so some weakness across the market could also be blamed for the weak sales figures.

However, not all market players were affected equally. Leading the pack in the initial weeks were Huawei and Honor, the latter having separated from Huawei in 2020 due to U.S. sanctions.

Counterpoint Research’s figures show a massive 64% increase in Huawei’s smartphone shipments year-over-year for the first six weeks of 2024, with Honor’s shipments also rising by 2%.

Source: Counterpoint Research

Other Chinese smartphone brands also experienced sales decreases in the six-week timeframe, though these were milder compared to Apple’s downturn.

Year-over-year, Oppo’s shipments plummeted by 29%, while Vivo and Xiaomi witnessed drops of 15% and 7% respectively^[6].

Apple is navigating a challenging landscape in China, its crucial market, facing stiff competition from local brands, including Huawei, which is on a revival path.

Before these challenges, Huawei was a formidable contender against Apple in China’s premium smartphone segment. The sanctions led to a dip in Huawei’s competitiveness, driving consumers towards iPhones. However, Huawei’s Mate 60 indicates a potential resurgence.

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1. Counterpoint Research
2. Counterpoint Research
3. Sec.gov
4. Tradingview
5. Counterpoint Research
6. Counterpoint Research