iPhone sales drop 19% in China during Q1

Apple Inc.’s iPhone sales in China fell significantly during the first quarter of 2024, with 19 per cent year-over-year, Reuters reported on Tuesday, citing market data from Counterpoint.

This marks Apple’s worst performance in the region since 2020. The decline pushed Apple’s market share down to 15.7 per cent, nearly neck-and-neck with Huawei, whose sales skyrocketed by 70 per cent during the same period.

This resurgence propelled Huawei to fourth place, just behind the new market leader, Vivo, and the second-place finisher, Honor (a sub-brand spun off from Huawei).

Analysts attribute Apple’s struggles to the resurgent Huawei, particularly in the premium segment.

Huawei’s recent launches, like the PURA 70 series, have effectively challenged Apple’s dominance in the high-end market.

Additionally, Counterpoint analyst Ivan Lam points out to a potential decline in iPhone upgrade demand compared to previous years.

However, there’s a glimmer of hope for Apple. Lam suggests that new colour options and aggressive sales initiatives in the second quarter could see the company return to positive territory.

Early signs of recovery are already emerging with slow but steady improvement in weekly iPhone sales.

Earlier this month, data revealed a near 10 per cent drop in global smartphone shipments for the first quarter of 2024, primarily due to heightened competition from Android phone makers led by Samsung Electronics.

Apple’s stock price reflects these challenges, slipping 0.4 per cent in premarket trading on Tuesday. Year-to-date, the stock has fallen roughly 14 per cent and recently experienced its worst weekly performance in over eight months.

Overall, China’s smartphone market experienced modest growth of 1.5 per cent in the first quarter, marking the second straight quarter of positive results. However, Apple’s future in the region seems uncertain as Huawei stages a remarkable comeback.