Apple: iPhone sales in China down 19% – Worst quarter since pandemic – Financial Post

Apple’s iPhone sales in China fell by 19% in the first quarter of 2024, according to data from an independent research firm, marking the gadget’s worst performance in the Asian country since the outbreak of COVID-19. 2020.

According to estimates by Counterpoint Research, the American technology company fell to third place in the market, almost at the same level as its fast-growing rival Huawei Technologies Co.

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The market as a whole registered an increase of around 1.5% as local brands including Honor Device and Xiaomi contributed significantly to the growth.

The iPhone’s weakness is notable in part because the first quarter, when China celebrates the Lunar New Year, is traditionally a period of increased consumption. In contrast, Huawei posted a 70% increase in sales, confirming its dynamic return to the premium segment once dominated by Apple.

Counterpoint’s data comes after IDC analysis showed global iPhone sales falling nearly 10% in the first three months of 2024, raising concerns about Apple’s ability to maintain its growth trajectory ahead of the company’s upcoming announcement results on May 2.

China remains one of the company’s biggest markets, but its business is under pressure due to tightening measures to ban the supply of foreign devices to state-owned companies and government agencies. Consumers are also responding to Huawei’s return to the spotlight after unveiling a Chinese-made chip that US sanctions were meant to prevent.

Down 24% in 6 weeks of 2024

According to Counterpoint, iPhone sales in China fell by about 24% in the first six weeks of 2024.

The iPhone maker was forced to run unusual sales in January in China to help maintain sales of its latest generation of devices. Its retail partners in China also offered tempting discounts, up to $180 off the regular price.

“Apple’s sales were subdued during the quarter as Huawei’s return directly impacted Apple in the premium segment,” said Counterpoint senior analyst Ivan Lam.

Apple, once the world’s most valuable company, has seen its stock fall 14% this year. Its market valuation is still at $2.56 trillion, trailing first Microsoft.

Investors are focused on how the company plans to stave off potential market share losses in the months before its next upgraded device family arrives in the fall. Apple is also trying to find its own response to perceptions that it has fallen behind in the race to develop artificial intelligence.