iPhone Sales Plummet in China While Huawei Reigns Supreme in Q1

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Apple Opens Its Fourth Store In Beijing
BEIJING, CHINA - JANUARY 10: (CHINA OUT) Customers view Apple products at the Apple store at China Central Place Shopping Center on January 10, 2014 in Beijing, China. This is the fourth and the biggest Apple store in Beijing, and the 10th in Mainland China. VCG/VCG via Getty Images

In the first quarter of 2024, iPhone sales in China took a notable hit, as reported by Counterpoint Research.

The overall smartphone market in China experienced a modest 1.5% year-over-year growth, driven by local manufacturers like Huawei, which saw a remarkable 69.7% surge thanks to its Mate 60 series. However, Apple faced a stark decline of 19.1% in smartphone sales during the same period, per Macrumors.

Why iPhone Sales Dipped in China

Analysts attribute Huawei's resurgence to a key factor challenging Apple, particularly in the premium segment, where both brands compete directly. In a recent VCPost article, China is seeing many local smartphone companies rise to the challenge, with Apple falling behind.

Delayed shipment of iPhones also does not help the tech giant's case since more local smartphones have the edge of being "accessible."

Despite this setback, Counterpoint suggests that upcoming iPhone models featuring new color options and AI features could help revive Apple's sales in the Chinese market. Following this suggestion, the tech giant is set to release AI in the upcoming iOS 18, but investors in China are yet to move positively.

Looking ahead, China's smartphone market is expected to maintain low single-digit growth throughout the rest of 2024. Apple will have to keep up with shipments, variations, and upgrades to keep Chinese customers tied to their releases.

Tags
Iphone, Huawei

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