Apple Suffers Heavy Blow in Chinese Market as iPhone Sales Plummet 30%
Kuai Technology reported on January 9th that Apple has suffered a significant decline in the Chinese market, with iPhone sales plummeting 30% in the first week of 2024 compared to the same period last year. According to foreign media reports, the sharp decline in sales has had a ripple effect, dragging down the entire Chinese smartphone market and leading to a double-digit decline in overall shipments.
Analysts attribute the dramatic drop in sales to fierce competition from local Chinese competitors, particularly Huawei’s strong counterattack. While sales of other Android brands and Huawei remained relatively flat during the same period, Apple’s 30% decline represents a significant acceleration compared to the company’s overall 3% decline in China in 2023.
Concerns are mounting over the possibility of Apple facing excessive inventory in the first half of 2024, as the growth rate of iPhone sales has peaked. Additionally, previous surveys have shown that although Apple still leads in the high-end market, accounting for 71% in 2023, the company’s share has declined from 75% in 2022. This is mainly due to the rise of Huawei’s Mate 60 series and an increase in market share for Samsung Electronics with the S23 and Fold series.
From a regional perspective, the global high-end market saw most of its growth in 2023 coming from China, Western Europe, India, the Middle East, and Africa, with India emerging as one of the fastest-growing high-end markets in the world. Furthermore, within the premium segment, it is the ultra-premium segment priced at $1,000 and above that is driving growth, accounting for over one-third of total sales in the high-end market.
The decline in iPhone sales in China and the changing landscape of the high-end smartphone market suggest a significant shift in consumer preferences, with local competitors making strong inroads against established players like Apple. As 2024 unfolds, it remains to be seen how Apple will adapt to these changing market dynamics and regain its foothold in the Chinese smartphone market.