Apple IPhones Sales Fall 24% In China Due To Fierce Competition

(RTTNews) - Tech giant Apple Inc's (AAPL) iPhone sales in China in the first six weeks of 2024 fell by 24% compared to a year earlier, according to research firm Counterpoint.

China's overall smartphone unit sales declined 7% year over year in the first six weeks of 2024, with key vendors like Apple, OPPO and Vivo seeing double-digit declines.

"Primarily, it faced stiff competition at the high end from a resurgent Huawei while getting squeezed in the middle on aggressive pricing from the likes of OPPO, Vivo and Xiaomi," said Senior Analyst Mengmeng Zhang, adding, "Although the iPhone 15 is a great device, it has no significant upgrades from the previous version, so consumers feel fine holding on to the older-generation iPhones for now."

The slowdown in iPhone sales reflects fierce competition in China from local smartphone makers. During the same period, China's Huawei recorded a sales jump of 64% in the country, the report says.

"Consumer confidence will need to rise to stabilize the market, but it is a tough call right now with everything that is happening, especially in the real estate sector," said Senior Analyst Ivan Lam, adding, "As far as Apple is concerned, there is more wriggle room in the short term. This weekend's aggressive promotions are just one example."

Huawei struggled for years due to US sanctions but its sales surged after releasing its Mate 60 series in August.