Sales Decline in China
According to a recent report from Counterpoint Research, Apple’s iPhone sales in China plummeted by 24% during the first six weeks of 2024. This decline has resulted in the iPhone losing its status as the best-selling smartphone in China, a position it achieved for the first time in 2023.
Market Share Drop
In 2023, Apple commanded 19% of the smartphone market share in China. However, this figure has now dropped to 15.7%, as reported by Counterpoint Research.
Vivo Takes the Lead
Counterpoint Research’s data reveals that Vivo, a Chinese multinational tech company, has emerged as the top-selling smartphone maker in China. This information was disclosed through Counterpoint’s China Smartphone Weekly Sell-through Tracker, with Bloomberg being the first to report this development. Following Vivo, Huawei and its subsidiary Honor occupy the second and third positions, respectively, with Apple trailing in fourth place.
Factors Contributing to Apple’s Decline
Mengmeng Zhang, a senior analyst at Counterpoint, attributes Apple’s sales decline to intense competition from Huawei at the high end of the market and aggressive pricing strategies from competitors like OPPO, Vivo, and Xiaomi in the mid-range segment.
Overall Smartphone Sales Trend
Counterpoint’s report indicates a 7% year-over-year decrease in smartphone sales across China.
Challenges for Apple in China
Apple’s dwindling sales in China are part of a broader set of challenges the company faces in the region. In addition to declining smartphone sales, Apple may be impacted by plans from Chinese chipmakers to establish chip production lines for local smartphone manufacturers. This development could potentially disrupt Apple’s supply chain, given its reliance on tight export restrictions. Moreover, there is a general trend towards supporting domestic companies in China, which could further hinder Apple’s prospects in the region.
Lack of Response from Apple
As of the time of reporting, Apple has not issued a response to inquiries from Business Insider regarding the sales decline in China.
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