Apple Smartphone Shipments In China Declined, But More Bumpy Roads Are Waiting Ahead
1min read Apple saw its smartphone shipments in China drop by 2.1% year-on-year in the fourth quarter of last year due to intensified competition from domestic rivals such as Huawei.
According to data released by IDC on Thursday, Apple's smartphone shipments in China dropped by 2.1% in the fourth quarter of last year due to enhanced competition.
Additionally, for the whole of 2023, Apple replaced Vivo as the world's largest smartphone seller with a market share of 17.3%. This marked the first time Apple had become the best-selling brand in China, but analysts predict that Apple's sales will face pressure again this year.
This decline highlights the challenges the American company faces in its third largest market, as some Chinese companies are restricting employees from using Apple devices due to U.S. government restrictions on Chinese apps citing security reasons.
Meanwhile, despite its smartphone business having been severely damaged by U.S. sanctions, Huawei also launched new products last year and made a huge comeback in the world's largest smartphone market, thus intensifying the competition.
According to IDC data, Huawei's shipments increased by 36.2% in the fourth quarter last year. The company became the fourth-largest smartphone supplier in China in the third quarter, with a market share of 13.9%, higher than 10.3% in the same period last year.
IDC stated that Apple's high-end market share in China was affected by competitor products and limited Apple product upgrades, reducing the overall attraction of the iPhone.
The research company said that Apple continues to attract a number of consumers' demand with significant discounts and promotions through third-party distribution channels: Earlier this month, faced with growing competitive pressures, Apple unusually offered discounts for iPhones, reducing the retail price by 500 RMB, which equals to $70.
However, analysts dont believe measurements like this will be extremely influential. Jefferies analysts predicted earlier this month that Apple's shipments will continue to decline at a two-digit rate by 2024, and Huawei's market share is expected to increase.
They estimate that by 2024, Huawei's global smartphone shipments will reach about 64 million units, significantly higher than the expected less than 35 million units in 2023.
Overall, the smartphone shipment in the Chinese market for the fourth quarter of last year was 73.63 million units, with an annual shipment of 271 million units, a decrease of 5%.
Apple will release its quarterly financial report next week.