• Local competitors impact Apple’s sales
• iPhone sales in China down 33% in 2024

Shipments of Apple Inc.’s iPhones in China experienced a decline of approximately 33% in February compared to the same month the previous year.

Source: CAICT

Statistics from the government indicate that international brands only exported approximately 2.4 million smartphones in the previous month, a figure impacted by the postponed Lunar New Year celebration.

Apple is responsible for the bulk of these exports, being the singular foreign brand with a substantial portion of the market.

There has been a decrease in demand for the top product in China, Apple’s paramount international market, which contributes to over 17%^[1]

The decrease in February signifies a continued trend of reduced shipments for a second month in a row. In January, the firm dispatched an estimated 5.5 million units, marking a 39% drop in the number of devices shipped compared to the same period last year, as per data from the China Academy of Information and Communications Technology.

The resurgence of Huawei Technologies Co. as a competitive force in the high-end smartphone market has eroded Apple’s market share, and the dip in iPhone sales led the U.S. company to uncommon price reductions in January.

Adding to the challenges, the US Justice Department has recently initiated legal action against Apple, alleging that the company engages in monopolistic practices in managing the iPhone business.

The legal action, taken in a federal court in New Jersey, accuses Apple of attempting to prevent users from migrating to alternative operating systems, like those on Android smartphones, which, in turn, leads to higher prices for consumers.

Apple’s shares have declined about 9%^[2] so far this year, making It the second-worst performer among the magnificent 7 group after Tesla.

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1. Sec.gov
2. Tradingview