Technology
Tuesday, March 5th, 2024 3:33 pm EDT
Key Points
- Sharp decline in iPhone sales in China: Apple’s iPhone sales in China plummeted by 24% in the first six weeks of 2024 compared to the same period in 2023.
- Resurgent Huawei a major competitor: The decline is attributed to increased competition from Chinese smartphone makers, especially Huawei. Huawei’s launch of the Mate 60, featuring 5G connectivity, is seen as a key factor in their resurgence.
- Unique challenges for Apple: Apple’s sales are also impacted by high iPhone sales in January 2023 due to supply chain issues in late 2022, making direct year-over-year comparisons difficult.
Apple’s iPhone sales in China are experiencing a significant slump, according to a report by Counterpoint Research. The analyst firm found that iPhone sales dropped a staggering 24% in the first six weeks of 2024 compared to the same period last year. This decline is attributed to intensifying competition from domestic Chinese smartphone brands, particularly Huawei.
Apple shares took a hit in the US stock market, dropping more than 2% in early trading. Huawei, a major competitor to Apple in the premium smartphone market, is experiencing a resurgence in China following the launch of its new Mate 60 phone. This comeback is especially noteworthy because of the US sanctions placed on Huawei in 2019 and 2020, which restricted their access to crucial chips and technology needed for 5G smartphones.
Prior to the sanctions, Huawei was the world’s leading smartphone seller and Apple’s primary competitor in China’s high-end market. When Huawei lost access to 5G technology and advanced semiconductors, many customers shifted to iPhones. However, the launch of the Mate 60, which boasts 5G connectivity, seems to be bringing Huawei back into the game.
Analysts believe Huawei is aiming to win back customers who switched to iPhones in recent years. While Apple is feeling the pressure, the impact is more pronounced on other non-Apple brands in the premium segment. It’s important to note that Apple also faced some unique challenges in early 2023. Supply chain disruptions due to COVID-19 lockdowns in China resulted in abnormally high iPhone sales in January 2023 compared to January 2024. This further complicates the picture when analyzing Apple’s recent sales slump in China.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/03/05/apple-iphone-sales-plunge-24percent-in-china-as-huawei-resurges-report-says.html
