Apple’s iPhone sales in China fell 19% to start the year, according to new a report, Apple’s worst performance in the country since the beginning of the COVID-19 pandemic in 2020.
The company’s share of China’s smartphone market fell in the first quarter of 2024 to 15.7%, from 19.7% the previous year, according to Counterpoint Research. The drop was driven by competition from Apple’s homegrown rival Huawei, which saw smartphone sales rise almost 70% after releasing its Mate 60 Pro series. Overall smartphone sales in China grew 1.5% year-over-year in the first quarter.
Apple fell to third place behind Chinese sellers Vivo and Honor in first-quarter market share — just barely on top of Huawei, which saw its market share jump from 9.3% to 15.5% year-over-year. Honor is a former subsidiary of Huawei.
iPhone sales in China fell 24% year-over-year in the first six weeks of 2024, due to competition with Huawei and “abnormally high” sales the previous year. Overall smartphone sales in the country were down 7% year-over-year for that period.
But China’s smartphone sales seem to be recovering back to a growth trajectory, Ethan Qi, an associate director at Counterpoint Research, said in a statement. Qi noted that sales promotions during Chinese New Year were the largest driver of growth.
“Apple’s sales were subdued during the quarter as Huawei’s comeback has directly impacted Apple in the premium segment,” said Ivan Lam, a senior research analyst at Counterpoint Research. “Besides, the replacement demand for Apple has been slightly subdued compared to previous years.”
But Lam also said it’s possible iPhone sales will recover, as there is already a slow and steady improvement.
“For the second quarter, the possibility of new color options combined with aggressive sales initiatives could bring the brand back into positive territory; and of course, we are waiting to see what its AI features will offer come WWDC in June,” Lam said. “That has the potential to move the needle significantly longer term.”
Secretary of Commerce Gina Raimondo said Sunday the chip used in the Mate 60 Pro smartphone “is not nearly as good” and “years behind” advanced chips produced in the U.S.
Apple stock was mostly flat in pre-market trading on Tuesday. The stock is down about 10% so far this year.