iPhone sales down 24% in China as Apple's woes continue

[midian182]

In brief: Has China's love of all things Apple come to an end? Even as Sino-American relations deteriorated, Cupertino was the second best-selling smartphone brand in the country last year. But it now sits in fourth place after iPhone sales fell 24% during the first six weeks of 2024.

Much like in other countries, China's smartphone market is going through a rough patch. Its mobile market shrank by 7% in the first few weeks of the year, with Huawei and Honor the only top manufacturers to see YoY unit sales growth, writes Counterpoint Research.

Apple now sits behind local giants Vivo, Huawei, and Honor, who are in first, second, and third place, respectively. Huawei had an especially good 12 months, having increased its market share from 9% to 17% thanks to 64% growth in sales.

News of Apple's struggles in China doesn't come as a huge surprise. A report from Jefferies analysts in January stated that iPhone sales had dropped by 30% in the country during the first week of the year. The analysts also said iPhone volume would fall by double-digits in 2024.

It was only last March when Apple CEO Tim Cook called Apple's relationship with China "symbiotic." Since then, there have been reports of the country banning iPhones from more government offices and sensitive departments, as well as iPhone 15 sales in China not living up to those of the iPhone 14.

Counterpoint says there are a few reasons why iPhone sales have fallen in China this year. The biggest is stiff competition in the high-end market from Huawei. The company launched the 5G-capable Mate 60 last year, which came as a big surprise given how it's been subject to numerous US sanctions since 2019 that restrict its 5G development.

Counterpoint adds that Apple is also being squeezed by aggressive pricing policies from the likes of Oppo, Vivo and Xiaomi.

Apple isn't having a good 2024 so far. Its shares have fallen 10% since the start of the year, it has lost its title as the world's most valuable company to Microsoft, and it has just been fined almost $2 billion by the European Commission over its music subscription streaming policies.

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https://www.techspot.com/news/102133-iphone-sales-fall-24-china-year-apple-woes.html

 

[Disiw]

Chinas economy is falling off a cliff, not surprising.

Just watch their stock index.

 

[The Talking Tech]

How the giant has fallen.

 

[Disiw]

How the giant has fallen.

Fallen LMAO.

Market cap around 3 trillion USD.

Up ~5% YoY in earnings.

We are talking about China here. They lack funds. Stock market is a disaster. Hence lower sales here. To be expected.

 

[WhoCaresAnymore]

What a misleading stat. The economy around the world is going to ****, of course sales will fall and flatten out. It doesn't help that iPhones are so damned expensive.

 

[wiyosaya]

Apple reaping the fruits of the greed it has sown.

 

[Achaios]

China's expenditure on weapons and miltary-related "defence" spending reached abt 292 BILLION USD in 2023.

They are now the second country in the world after the US in military expenditure.

Putin spent a paltry 86 billion in comparison. Russia is rapidly falling behind due to their struggling economy.

You are kidding yourselves if you think that the Dragon is faltering.

Carry on.

 

[kiwigraeme]

What a misleading stat. The economy around the world is going to ****, of course sales will fall and flatten out. It doesn't help that iPhones are so damned expensive.

Nah seems China is faring worse than neighbours.
Problem is China marketed itself as the world's factory - With CCP policies aren't great , with USA imposing some "sanctions" many companies moving to Vietnam , India etc .

Job Security is perceived as fraught . So consumers are not spending
With massive companies like Evergreen going under. Real estate imploding , Car prices imploding
How many Chinese tour groups do you see if your country now , before Covid Chinese tourist were huge around the world

Add to that huge flight of wealth from China . Even though restrictions to move money the very rich use overseas huge Chinese project companies to shift funds for a fee.

Given the unfinished skyrise in Los Angeles , road and bridge collapses in China and around the world from Chinese companies would you contract to a Chinese company ?

China really needs to make products the rest of the world wants

Look at Hong Kong now a shadow of it's former self as a powerhouse in merchant banking etc - Probably Singapore took over

Plus they have a trust issue to overcome . Chinese themselves don't trust chinese products. South Korea , Japan can sell their culture around the world even outside of electronics cars . Kpop, Jpop, Clothes , Soy , food etc - Jpop is not that good , but can sell the clothes etc assoc

Korea , Japan protect and support traditional products. Chairman Mao and his Students took an axe to that .
Only the rich can buy ming vases

 

[p51d007]

Between the fall of the global economy, and the CCP pushing "local" companies, I'm not surprised the Apple market if falling in Communist China.

 

[Mr Majestyk]

Well the Chinese do have a plethora of good Android phones to choose from. I'm amazed anyone would buy iPhone over there.

 

[Disiw]

Well the Chinese do have a plethora of good Android phones to choose from. I'm amazed anyone would buy iPhone over there.

Good? LMAO. Only the good Androids comes to the vest. Pixel 8 / 8 Pro is the best Android right now, also gets Apple Like level of support with 7 years. Apple has 6 years on average.

Cheap asian Androids are terrible in most cases. Unrealiable as h. Zero security fixes. Lacking updates. Crashing and apps that won't start.

Ever been in China? They use mostly cheap garbage Androids. The top 1% is rich and buy Apple. Every single CEO and important person use Apple over there.

Even Samsung Electronics CEO was caught in the Airport using iPhone

 

[Lounds]

I think this is a combination between the untrust of US tech and the CCP potentially thinking Apple equipment is spying on them. It could also be a cultural response to the sanctions against China. The US was all for China growth while it made their elite class even richer at the expense of working class Americans and other Western nations.

It does feel like we're at end times for fiat currency and modern capitalism as we know it.

 

[Endymio]

China's expenditure on weapons and miltary-related "defence" spending reached abt 292 BILLION USD in 2023.

They are now the second country in the world after the US in military expenditure.

They've had that status for some time now ... and in terms of PPP (purchasing power parity), China is easily #1. They hide much of their expenditures by giving the military sector special pricing, and, while the US military expends 70% of its budget on pay and retirement benefits, China pays its soldiers pennies and spends the bulk on hardware and weapons development.

 

[Superconductor]

Good

 

[WhoCaresAnymore]

Apple reaping the fruits of the greed it has sown.

I miss Steve Jobs. When we had innovation that we desired. Not this crap they keep throwing at us now.