China
2024.04.23 21:33 GMT+8

iPhone Q1 shipments in China tumble 19%, worst since 2020: data

Updated 2024.04.23 21:33 GMT+8
CGTN

iPhone 15 smartphones are displayed at an Apple Store, Nanjing City, east China's Jiangsu Province, March 27, 2024. /CFP

Apple's smartphone shipments in China tumbled 19 percent in the first quarter of the year, the worst performance since 2020, as its dominance in the high-end segment came under pressure from Huawei's new product launches, market data showed.

Apple's share in the world's biggest smartphone market fell to 15.7 percent in the first quarter from 19.7 percent a year earlier. That put it almost level with Huawei, which saw sales jump 70 percent, according to research firm Counterpoint.

Apple lost its crown as the biggest smartphone seller in China to rival Vivo, sliding to third place in the quarter, followed by Huawei, whose market share jumped to 15.5 percent from 9.3 percent a year earlier. Honor, a mass-market brand spun out of Huawei, was in second place.

"Huawei's comeback has directly impacted Apple in the premium segment," said Counterpoint analyst Ivan Lam. "Besides, the replacement demand for Apple has been slightly subdued compared to previous years."

"For the second quarter, the possibility of new color options combined with aggressive sales initiatives could bring the brand back into positive territory," Lam said, adding it is seeing slow but steady improvement in weekly iPhone sales.

Throughout the first quarter, Apple launched campaigns to entice consumers with discounts, including subsidizing certain iPhone models by as much as 1,300 yuan ($180).

Many smartphone reviewers on Chinese social media have been openly criticizing recent iPhones for their slow charging speed, overheating and lack of many local functionalities widely available on cheaper competitors.

Huawei last week released its Pura 70 series of high-end phones after launching the Mate 60 series in August. The Mate 60 was seen as a comeback for the Chinese firm in the high-end market, with analysts describing the launch as a triumph for the company over U.S. sanctions.

Canadian research firm TechInsights expects overall shipments in China this year to top 50 million units, including 10 million for the Pura 70 series. That would make Huawei the No. 1 seller with a 19 percent market share, up from 12 percent in 2023.

In the first quarter, China's smartphone market grew 1.5 percent, marking the second consecutive quarter of positive growth, according to Counterpoint.

(With input from Reuters.)

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