In recent years, Apple's market position in China is no longer impregnable, and the first-quarter financial report shows that Apple's revenue in China fell 13% year-on-year, while China's local brands such as OPPO and Huawei have performed strongly and continued to lead.
At the beginning of 2024, Apple released its first-quarter earnings report that surprised the market. While Apple's iPhone sales remain strong globally, with $69.7 billion in revenue, the situation is very different in China. China's revenue was only $20.82 billion, down 13% from the same period last year, which is a cause for concern.
Was it the same craze that Apple had when it first entered the Chinese market? At that time, every new product release of Apple would attract great attention from consumers, and some people even chose to sell their kidneys in order to buy the first-generation iPhone, which shows how attractive Apple was at that time.
Let's start with the evening of May 7, when Apple unveiled a new generation of iPad, Apple Pencil and Magic Keyboard at a press conference. Apple seems to be gradually shifting from a focus on mobile phones to a strategy of diversifying its products. But on the eve of the press conference, the news about the decline in Apple's mobile phone sales in the market has spread far and wide.
In the first quarter of 2024, China's smartphone market shipped more than 60 million units, a slight increase of 1% year-on-year. OPPO's OnePlus brand has a market share of 17.1%, ahead of all other competitors. It is followed by Huawei, Honor, Vivo, and Xiaomi.
Apple's market share is only 13.7%, and it even fell out of the top five. This is undoubtedly a huge blow to the former market hegemon.
Apple is still leading the way in technology, with annual chip updates and system optimizations at the top of the industry, but Chinese mobile phone brands are not resting there. Through continuous technological research and development, they have been able to produce products that are comparable to the Apple system, or even superior in some aspects.
The price of Apple's products has remained high, which is a clear disadvantage in a price-sensitive market like China. Domestic mobile phone brands are good at attracting a large number of users in the low-end market through cost-effective strategies.
Although Apple's iOS system is stable and smooth, it is more limited than the Android system in terms of personalized customization and application ecology. Domestic mobile phone manufacturers have carried out a lot of localization and personalized optimization on the basis of the Android system, which is more in line with the usage habits and needs of Chinese users.
Domestic brands such as OPPO, Vivo and Huawei have more intensive and targeted marketing activities in their home markets. Whether it is online advertising or offline physical store layout, it is more in place than Apple. These brands often increase their exposure and affinity with the brand through collaborations with popular TV shows, pop stars, or major sporting events.
Some of Apple's controversies in the Chinese market in recent years have also affected the brand image to a certain extent. From users' dissatisfaction with after-sales service to concerns about privacy and security, these issues have caused widespread discussion on the Internet, which in turn has affected consumers' purchase intentions.
From the fierce offensive of domestic competitors, to the changes in consumer demand, to the limitations of its own strategy, these factors have combined to cause Apple's market share to decline in the first quarter of 2024. Ultimately, it remains to be seen whether Apple will be able to adjust its strategy and recapture the hearts and minds of Chinese consumers.