Agency: Huawei's strong return to hit Apple, iPhone sales in China fell 19% in the first quarter of this year

Tencent Technology News reported on April 23 that according to foreign media reports, according to the latest data released by an independent research company, Apple's iPhone sales in the Chinese market in the second quarter of fiscal year 2024 (that is, the first quarter of this year) have declined significantly, with a decline of up to 19%. This was Apple's worst quarter in the Chinese market since the start of the pandemic in 2020.

According to estimates by Counterpoint Research, Apple's sales have fallen to third place in the fiercely competitive market of China, roughly on par with the rejuvenated Huawei. Led by local brands such as Honor and Xiaomi, the overall smartphone market has achieved a growth of about 1.5%.

Part of the reason for the sluggish iPhone sales is that the first quarter coincides with the time China celebrates the Lunar New Year, which is usually the peak time for consumption. However, Apple has not been able to take the opportunity to boost sales. By contrast, Huawei's sales have grown by a staggering 70 percent, underscoring its strong recovery in the once-Apple-dominated premium segment.

Ahead of Counterpoint's release, an analysis by market research firm IDC revealed a similar trend. Data shows that in the first three months of 2024, global iPhone shipments fell by nearly 10%. This has raised concerns about Apple's ability to maintain its growth momentum in its upcoming earnings report on May 2.

While China remains one of Apple's most important markets for mobile phones, the company's business in the country is facing increasing challenges, with consumers showing strong enthusiasm for Huawei's resurgence.

Caption: iPhone sales in the Chinese market slipped to third place from first in the first quarter of fiscal 2023

For the first time, the latest data from Counterpoint Research gives us a comprehensive insight into how the iPhone performed in China in the first quarter of this year. According to the agency's preliminary estimate last month, iPhone sales in China fell by about 24% in the first six weeks of 2024.

In order to maintain the sales momentum of the new generation of iPhones, Apple took a rare discount measure in China in January this year. This strategy is not only reflected in Apple's official website, but also in its retail partners in the Chinese market, which has actively followed suit, offering a price reduction of up to $180.

Ivan Lam, senior analyst at Counterpoint, said: "Huawei's strong comeback in the premium segment has had a direct impact on Apple's sales, resulting in a significant reduction in Apple's sales in the quarter. In addition, consumer demand for a new Apple phone has also decreased slightly compared to the past few years. ”

Apple used to be the world's most valuable company, but its share price has not been optimistic this year, falling by 14% cumulatively, underperforming the overall market. Although its market capitalization remains high at $2.56 trillion, it has been surpassed by Microsoft.

Investors are watching closely to see how Apple will adjust its strategy in the months leading up to the launch of its next-generation upgraded iPhone this fall to avoid further market share losses. At the same time, Apple also needs to deal with doubts that its deployment of artificial intelligence lags behind its competitors. (Compiler/Golden Deer)