Apple Faces Challenges in Chinese Market as iPhone Sales Decline
On May 2, Apple released its latest quarterly financial report, revealing a 4% year-on-year decrease in revenue to US$90.753 billion. Notably, revenue from Greater China, Apple’s third-largest market, experienced an 8% decline to US$16.372 billion.
Despite facing fierce competition in China, Apple CEO Tim Cook remains optimistic about the market. Cook highlighted Chinese users’ enthusiasm for Apple products but acknowledged the need for further efforts in the region.
The decline in iPhone sales in China was particularly concerning, with a 19% drop marking the worst performance since 2020. This decline coincided with Huawei’s resurgence in the high-end market, boasting a 69.7% year-on-year growth in the first quarter.
IDC’s quarterly mobile phone tracking report revealed that Honor and Huawei tied for first place in the Chinese smartphone market in the first quarter of 2024. Apple, on the other hand, saw a 6.6% year-on-year decrease in shipments, relinquishing its top ranking in the domestic market.
Despite efforts such as price adjustments and promotions, Apple continues to face increasing challenges and pressure from competitors. The company is urged to innovate in software and hardware to attract consumers and regain its footing in the Chinese market.
As Apple navigates the evolving smartphone landscape in China, the company must prioritize innovation and adaptability to maintain its competitiveness in a rapidly changing market environment.