Apple is facing a significant slowdown in the Chinese mainland, with its smartphone shipments plunging by 19 percent in the first quarter of the year. This marks the company's worst performance in the region since 2020.
The decline has been attributed to increased competition from Huawei, whose new product launches have revitalized its presence in the high-end segment. According to research firm Counterpoint, Apple's market share in the Chinese mainland fell to 15.7 percent in Q1, down from 19.7 percent a year earlier, nearly leveling with Huawei, which saw a remarkable 70 percent jump in sales.
Apple has been dethroned as the leading smartphone seller in the Chinese mainland, slipping to third place behind Vivo and Huawei. Honor, a mass-market brand that spun out of Huawei, secured the second spot.
Counterpoint analyst Ivan Lam stated, \"Huawei's comeback has directly impacted Apple in the premium segment. Besides, the replacement demand for Apple has been slightly subdued compared to previous years.\"
Looking ahead to the second quarter, Lam remains optimistic. \"The possibility of new color options combined with aggressive sales initiatives could bring the brand back into positive territory,\" he said, noting a slow but steady improvement in weekly iPhone sales.
In an effort to boost sales, Apple launched several campaigns during the first quarter, offering discounts and subsidizing certain iPhone models by up to 1,300 yuan ($180).
Despite these efforts, many smartphone reviewers on Chinese social media have criticized recent iPhone models for issues such as slow charging speed, overheating, and the lack of local functionalities that are available on more affordable competitors.
On the other hand, Huawei has been making strong strides with its latest releases. Last week, the company unveiled its Pura 70 series of high-end phones, following the successful launch of the Mate 60 series in August. Analysts have hailed the Mate 60 as a significant comeback for Huawei in the high-end market, particularly in the face of U.S. sanctions.
Canadian research firm TechInsights anticipates that overall smartphone shipments in the Chinese mainland this year will exceed 50 million units, including 10 million for the Pura 70 series. This growth positions Huawei as the top seller with a 19 percent market share, up from 12 percent in 2023.
The Chinese mainland's smartphone market experienced a modest growth of 1.5 percent in the first quarter, marking the second consecutive quarter of positive growth, according to Counterpoint.
(With input from Reuters.)
Reference(s):
iPhone Q1 shipments in China tumble 19%, worst since 2020: data
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