In the initial six weeks of 2024, Apple ($AAPL) witnessed a substantial 24% decline in iPhone sales in China, causing the tech giant to slip to the fourth position in the competitive Chinese smartphone market. This decline contrasts sharply with Huawei’s impressive 64% surge in sales during the same period, primarily fueled by the popularity of its Mate 60 series.
As a result of this decline, Apple’s market share in China plummeted to below 16%, marking a significant decrease from the 19% it held a year ago. In contrast, Huawei’s market share soared to 16.5%, up from 9.4%, driven by a surge in patriotic buying. The current market dynamics have positioned Vivo as the market leader with a 19.2% share, while Honor, which separated from Huawei in 2020, holds the third position.
According to JPMorgan, there is little optimism for a quick turnaround for Apple in the Chinese market. Despite the share loss, the analysts expect a potential recovery in the overall Chinese smartphone market to positively impact Apple’s volumes and services revenue. However, they remain cautious, citing the uncertain recovery path ahead for Apple in China.
Analyst Samik Chatterjee noted that the magnitude of the decline indicates an accelerated pace compared to the previous quarter, where Apple had acknowledged mid-single-digit declines in iPhone sales. While anticipating a potential recovery, he emphasizes the cloudy visibility regarding the trajectory of Apple’s rebound in China.
Apple’s sales performance in China exhibited a stark contrast to the growth experienced in 2023, where sales grew by 30%, and the remarkable 173% surge observed in 2021. The reported 24% decline in the first six weeks of 2024 surpasses the overall 7% drop in China’s smartphone sales, underscoring the challenges Apple faces in this pivotal market.
JPMorgan Warns of Prolonged Headwinds for Apple in Chinese Market Amidst Accelerating iPhone Sales Decline: Analyst Insights
I’m Abhishek Sharma, an Advocate based in Delhi, entrepreneur, investor, and founder of BigBreakingWire. I am an enrolled Advocate with a strong interest in entrepreneurship, media, and technology. I founded BigBreakingWire, a digital news platform covering breaking news, business, financial markets, companies, and important developments in India and around the world. I also have a software company and take an active interest in technology, software, AI, digital products, and new business ideas. As an investor, I’m interested in discovering and investing in promising businesses and startups. I look for good ideas, strong founders, practical business models, and opportunities with long-term potential. I enjoy building businesses, learning about new industries, and connecting with people who are working on interesting ideas and opportunities. Advocate | Entrepreneur | Investor | Founder & Editor-in-Chief, BigBreakingWire
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