Apple’s iPhone sales in China plunge as Huawei reaches for the top

Posted by Admin April 24, 2024 Tech

Apple lost its throne as China’s bestselling smartphone brand, after sales declined 19.1 per cent in the first quarter amid rising competition from Huawei Technologies and other local rivals, according to market research firm Counterpoint.

The US tech giant, which topped smartphone sales in China in the fourth quarter last year, saw its market share in the past quarter shrink to 15.7 per cent from 20.2 per cent previously. It ranked third, overtaken by Chinese manufacturers Vivo and Huawei spin-off Honor, which secured shares of 17.4 per cent and 16.1 per cent, respectively.

Huawei, in the fourth spot with a share of 15.5 per cent, achieved sales growth of nearly 70 per cent, “largely attributed to the successful launch of the 5G-capable Mate 60 series as well as its enduring brand reputation”, Counterpoint said in its report.

“Apple’s sales were subdued during the quarter, as Huawei’s comeback has directly impacted Apple in the premium segment,” said Ivan Lam, senior research analyst at Counterpoint.

People try out Huawei’s Pura 70 series smartphones at a store in Shanghai. Photo: AFP

Amid fierce competition in the world’s largest smartphone market, Apple last month launched its eighth store in Shanghai, which is touted to be the largest in the country and the second-largest in the world.

Apple CEO Tim Cook celebrated the store’s opening in person, as part of a high-profile tour in China that included an appearance at the state-backed China Development Forum, meetings with local game developers and the founder of electric vehicle giant BYD, and a morning stroll with popular Chinese actor Zheng Kai.

Apple is set to achieve “slow but steady improvement” in the coming months, Counterpoint’s Lam said.

“For the second quarter, the possibility of new colour options combined with aggressive sales initiatives could bring the brand back into positive territory.”

Still, the iPhone 15 and coming 16 series will face strong competition from Huawei’s new Pura 70 series, which shipped its high-end Pro and Ultra models last week. The Pura 70 models represent the company’s biggest flagship handset launch since the Mate 60 Pro last year, which featured a Chinese-made processor.

Huawei is expected to regain the No 1 position in China this year, shipping more than 50 million smartphones, including around 10.4 million Pura 70 handsets, according to a report last week by research firm TechInsights.

From January to March, China’s smartphone market registered growth for the second consecutive quarter following 10 quarters of decline, according to Counterpoint. The firm forecasts “low single-digit” growth for the full year, compared with a decline of 1.4 per cent last year and a plunge of 13.9 per cent in 2022.