Rivals eat into Apple iPhone shipments in China
Apple’s smartphone shipments in China shrank 2.1% in the final quarter of 2023 from a year ago, hurt by intensifying competition from local rivals led by Huawei, data from research firm IDC showed on Thursday.
The drop underscores the challenges facing the US firm in its third-biggest market, as some Chinese companies and government agencies limit employees’ use of Apple devices, a measure that mirrors US government restrictions on Chinese apps on security grounds.
Huawei, whose smartphone business was decimated by US sanctions, made a comeback in 2023 with new launches, intensifying competition in the world’s biggest smartphone market, which grew just 1.2% in the final quarter of 2023.
Huawei’s shipments rose 36.2% in the last quarter of the year, the IDC figures showed. It became the fourth-largest smartphone vendor in China in the period with 13.9% market share, up from 10.3% in the same year-ago quarter.
TOP SELLER
For the full year, however, Apple overtook Vivo to become the top smartphone seller with a 17.3% market share, according to IDC.
This marks the first time Apple became the top seller in China, but analysts predict its sales will come under pressure again in 2024.
IDC said Apple’s high-end market share in China has been affected by rival products and limited product upgrades by Apple, which reduced the overall attractiveness of iPhones.
It said Apple still attracted demand from many consumers through substantial discounts and promotions carried out through third-party distribution channels.
Earlier in January, Apple offered rare discounts on its iPhones, cutting retail prices by as much as 500 yuan ($70) amid growing competitive pressure.
Jefferies analysts predicted earlier in January that Apple’s shipment volumes would continue declining by double digits in 2024, while Huawei is seen bolstering its market share.
They estimate Huawei will ship 64-million smartphones worldwide in 2024, a significant rise from fewer than 35-million units projected for 2023.
Overall, shipment volume in China’s smartphone market was 73.63-million units in the fourth quarter.
For the full year, shipment volume was 271-million units, down 5%, IDC said.
Apple will release its quarterly results next week.