iPhone shipments in China have reportedly declined by nearly a fifth during the first quarter of 2024 compared to the same period one year ago. Apple’s struggles in China are exacerbated by Huawei’s monumental growth during the same period, reports Counterpoint Research.
iPhone shipments experienced a year-over-year decline of as much as 19.1 percent in China during Q1 2024, representing the biggest decline recorded for any major OEM in the country this year. As a result, the iPhone’s market share dropped by four percent compared to Q1 2023, declining from 19.7 percent to 15.7 percent. Apple is now the third largest smartphone vendor in China after it was the first in Q1 2023, relinquishing the first and second spots for Vivo and HONOR respectively.
On the other hand, Huawei’s skyrocketing resurgence in China is seeing no end in sight. Per the report, Huawei’s shipments recorded stellar YoY growth of 69.7 percent as it now holds a market share of 15.5 percent, slightly behind that of Apple. As covered earlier, Huawei’s strong numbers are largely attributed to its Mate 60 lineup, which launched late last year with 5G capabilities and an advanced chip despite economic sanctions from the United States targeting the company.
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Reports of iPhone shipments substantially shrinking in China are not new with no end in sight for the decline. Official data compiled by the Chinese government revealed that iPhone shipments declined by over a third during February and January. Apple’s problems are further amplified by the fact that the overall smartphone market in China continues to grow, even if barely. Counterpoint further reports that the market grew by 1.5 percent in Q1 2024 and that single-digit growth should be expected for the rest of the year.
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 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, desperately hoping to improve its sales. So far, it seems that the offers haven’t made enough impact to reinvigorate sales in the country.
