Apple iPhone sales drop 19% in China as demand for Huawei smartphones soars, research says
Apple's iPhone sales in China are in a slump. Shipments dropped a whopping 19% in the first three months of this year, marking their worst performance since 2020. This slump seems to be due to hot new phones from rival Huawei. Huawei's sales in China surged by 70%, according to a market research firm. As a result, Apple's market share in China, the world's biggest smartphone market, has shrunk from 19.7% to just 15.7%, putting them neck-and-neck with Huawei.
Apple took a tumble in China, the world's biggest smartphone market. They went from being the number one seller to third place, losing the crown to Vivo. This slump comes as Huawei, a major competitor, is making a strong comeback. Huawei's market share skyrocketed from 9.3% to 15.5% in just a year. Honor, a brand recently separated from Huawei, also grabbed a big chunk of the market, landing in second place.
An analyst named Ivan Lam from Counterpoint research explained that Huawei's resurgence is directly hurting Apple's sales in the high-end phone market. On top of that, people aren't upgrading their iPhones as often as they used to.
Analyst Lam believes there's a chance Apple can rebound in China. New phone colors and sales promotions might be the key. It's a tough market, though. China is one of Apple's biggest, responsible for roughly 17% of their recent quarterly revenue. This slump follows a rough first quarter globally, where Apple's smartphone sales dropped nearly 10% due to competition from Android phones, especially those made by Samsung. There are signs of improvement, however, with iPhone sales in China slowly ticking back up.
Samsung emerged victorious in the first quarter smartphone wars, dethroning Apple as the world's leading phonemaker. Apple's stock felt the sting of the news, dipping slightly in pre-market trading. This comes on the heels of a rough year for the iPhone giant, with their stock price down 14% year-to-date and their worst weekly performance in over eight months.
Meanwhile, in an effort to boost sales in China, Apple launched discount campaigns throughout the quarter, even subsidizing some iPhone models by a significant amount. This aggressive strategy highlights the intense competition in the world's largest smartphone market.
Chinese tech giant Huawei is also making a comeback. Hot on the heels of their successful Mate 60 series launch last August, they recently unveiled the high-end Pura 70 line. The Mate 60 series was seen as a win for Huawei, overcoming US sanctions that restricted their access to advanced technology. The Pura 70 boasts a cutting-edge Chinese-made chip, further solidifying Huawei's position as a major player in the high-end market.
The US, however, downplays the threat. Commerce Secretary Gina Raimondo argues that the chip powering Huawei's flagship phone isn't quite as advanced as American offerings, suggesting that US sanctions are still having an impact.
Looking ahead, analysts predict a booming year for China's smartphone market, with total shipments expected to top 50 million units. Huawei is poised to be the number one seller in China, capturing a significant 19% market share, up from 12% last year. This growth is attributed to the success of the Pura 70 series, with an estimated 10 million units expected to be shipped this year. The Chinese market continues to be a battleground for smartphone giants, and with Huawei's resurgence, the competition is only heating up.
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