iPhone shipments in China experienced a decline by over a third in February 2024 compared to the same month one year ago as the device continues its freefall in the country, according to official data supplied by the Chinese government (via Bloomberg).
Per the state-complied data, foreign brands only shipped around 2.4 million smartphone units in China throughout February. Most of this figure belongs to iPhone shipments as Apple is the largest foreign OEM in the country. This represents a year-over-year decline of about 33 percent, underscoring the weak appetite of Chinese consumers for foreign brands and Apple in particular following the surprising resurgence of Huawei with its Mate 60 lineup introduced late last year.
Data shows that iPhone shipments in January were no better than the reported February numbers. In the first month of the year, Chinese iPhone shipments reached 5.5 million units, a YoY decline of about 39 percent compared to January 2023. Beyond the iPhone, the overall smartphone market in China declined by almost 30 percent in February as consumers seem largely unfazed by current offerings. Still, annual growth for the market as a whole could materialize in the subsequent months and quarters.
Reliable analyst Ming-Chi Kuo was one of the first industry observers to note weak iPhone shipments primarily in China and elsewhere. Kuo predicted that annual iPhone shipments could regress by as much as 15 percent in 2024 due to “structural challenges” and demand for AI features, something that the iPhone is yet to offer. Kuo also pointed out that iPhone shipments in China experienced a decline of about 30 to 40 percent in recent weeks, and it seems that official data is backing up his claims.
Counterpoint Research earlier estimated that overall iPhone shipments in China have shrunk by as much as 24 percent during the first six weeks of 2024, marking the biggest decline among top OEMs. Apple has run a rare discount for all iPhone models in China in hopes of improving its sales. So far, it seems that the offers haven’t made enough impact to reinvigorate China iPhone sales.
