In an unexpected turn at the start of 2024, Apple’s iPhone has seen a 30% sales drop in China during the initial week, as reported by Jefferies analysts. The iconic U.S. brand, typically a frontrunner in the smartphone race, is facing stiff competition from local powerhouse Huawei and other Android manufacturers who have maintained a stable growth trajectory.
Despite Apple’s aggressive pricing strategies, including a notable 16% discount on flagship models such as the iPhone 15 Pro and Pro Max on Pinduoduo, the tech giant couldn’t avert the sharp decline. This dip in sales marks an escalation from a 3% year-over-year decrease in 2023, which already hinted at the shrinking foothold of Apple in its third-largest market.
The resurgence of Huawei, particularly with its Mate 60 series, is seen as a significant factor in Apple’s current predicament. Post-sanctions, Huawei’s comeback has been marked by a 6% market share increase in the final quarter of 2023.
Looking ahead, Jefferies analysts project a challenging year for Apple, anticipating continued double-digit shipment declines. In contrast, Huawei’s market presence is expected to bolster, with an estimated 64 million smartphones to be shipped worldwide in 2024.
