Key Points:
- Apple’s iPhone sales in China fell by 24% YoY in the first six weeks of 2024, and the market share in China dropped to 15.7%.
- Huawei witnessed a 64% sales increase during the same period and rose to a market share of 16.5%, compared to 9.4% a year earlier.
- The overall smartphone market in China contracted by 7%. Apple initiated subsidies and discounts on certain iPhone models to counter the decline.
- Chinese brands Vivo, Xiaomi, and Oppo experienced declines of 15%, 7%, and 29%, respectively.
In the first six weeks of 2024, Apple’s iPhone sales in China witnessed a significant decline of 24% year-on-year, according to research firm Counterpoint. The decrease is attributed to heightened competition from domestic rivals, especially Huawei. In contrast, Huawei experienced a surge in unit sales, increasing by 64% during the same period.
Apple, a major player in the premium smartphone segment, faced challenges in the Chinese market as its chief competitor, Huawei, gained momentum. Apple’s share of the Chinese smartphone market dropped to 15.7%, securing the fourth position. In comparison, during the corresponding period in 2023, Apple held the second position with a 19% market share. Huawei advanced to second place, expanding its market share to 16.5% from 9.4% a year earlier.
The overall smartphone market in China shrank by 7%, highlighting the competitive landscape and evolving consumer preferences. Counterpoint’s senior analyst, Mengmeng Zhang, explained that Apple encountered stiff competition from Huawei at the high end of the market while facing pricing pressures from other Chinese brands like OPPO, Vivo, and Xiaomi in the mid-range segment.
Apple initiated subsidies on certain iPhone models to counter the decline, offering discounts of up to 1,300 yuan ($180.68) through flagship stores on Tmall, Alibaba’s major marketplace platform. Last month, the company had already provided discounts of up to 500 yuan on its official sites.
Huawei’s resurgence in premium smartphone sales is notable, especially since the release of its Mate 60 series in August. The company had previously grappled with U.S. restrictions on the export of crucial components.
The report also highlighted that Honor, the smartphone brand spun off from Huawei in 2020, was the only top-five brand to witness an increase in unit sales during the first six weeks of the year, rising by 2%. On the other hand, Chinese brands Vivo, Xiaomi, and Oppo experienced declines of 15%, 7%, and 29%, respectively.
