Huawei Resurgence Sends iPhone Sales Plummeting by 24% in China

Business | March 5, 2024, Tuesday // 16:56|  views


In a recent report by Counterpoint Research, a leading global technology market research firm, it has been revealed that Apple's iPhone sales in China took a significant hit during the first six weeks of 2024. Cited by CNBC, the report indicates a staggering 24% decline in iPhone sales within this period. Analysts attribute this sharp decline to intense competition from domestic smartphone manufacturers, notably Huawei, Oppo, Vivo, and Xiaomi.

Huawei, in particular, has emerged as a formidable competitor, experiencing a resurgence in its consumer business following the launch of its Mate 60 smartphone. The Chinese tech giant's aggressive market strategy has put pressure on Apple, leading to a notable decline in iPhone sales. While other Chinese smartphone companies also reported sales declines during this period, the impact on Apple was more pronounced.

According to Counterpoint Research, Huawei and its spin-off Honor were among the top-performing smartphone brands during the initial six weeks of 2024. Huawei witnessed a remarkable 64% year-on-year increase in smartphone shipments, while Honor saw a modest 2% rise. This resurgence underscores the shifting dynamics in China's smartphone market and the increasing competition faced by Apple.

The challenging environment in China's key market has presented significant hurdles for Apple. Intense competition from domestic players, including the resurgent Huawei, has created obstacles for the American technology giant. Despite its global prominence, Apple has struggled to maintain its market share in China amidst fierce competition and changing consumer preferences.

Huawei's resurgence comes as a surprise to many, considering the sanctions imposed on the company by US authorities in previous years. Despite facing multiple challenges, including restrictions on accessing key technology for 5G connectivity, Huawei has managed to regain momentum with its Mate 60 smartphone.

Neil Shah, an analyst at Counterpoint Research, highlighted Huawei's efforts to reclaim customers who had previously shifted to the iPhone. This strategic approach, coupled with Huawei's innovative products, has contributed to its resurgence in the Chinese market.

Additionally, Apple faced supply chain disruptions towards the end of 2022 due to lockdown measures imposed in China amid the COVID-19 pandemic. These disruptions may have further impacted iPhone sales in the region, exacerbating the challenges faced by the tech giant.

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Tags: Huawei, iPhone, China, smartphone


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