According to a recent report, iPhone sales fell 24 percent in the first six weeks of 2024 in China, which could lead to significant problems for Apple in the key market.
According to Counterpoint Research analysts, the overall Chinese mobile market fell by 7 percent, but the iPhone fell even more than the average, and Chinese buyers turned to local brands, especially Huawei.
A CNN reminds us that Apple’s problem has been going on for about a year now, as China’s economy has slowed and trade tensions and nationalism have intensified.
Apple faced stiff competition in the high-end from a resurgent Huawei, while in the mid-range it was squeezed by aggressive pricing from Oppo, Vivo and Xiaomi
said Mengmeng Zhang, senior analyst at Counterpoint.
Apple shares fell 2.8 percent on Tuesday, bringing the stock down 11.6 percent this year due to weakening sales. China remains a key market for Apple as it ranks second behind the United States. In January, the company tried to stimulate demand with significant discounts in order to somewhat mitigate the downturn.
In January, Huawei held 17 percent of the mobile market in China, compared to Apple’s 16 percent share, because some Chinese consumers may have felt that they were violated by the US government’s sanctions, and Huawei’s Mate 60 smartphone was able to offer them a competitive alternative.
2024-03-06 19:55:00
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