Apple iPhone Sales in China Slumped 19% During Q1 2024

Apple saw iPhone sales in China drop 19.1% year-over-year during the first quarter of 2024, according to data from market tracker Counterpoint Research.

The Chinese smartphone market as a whole rebounded, growing 1.9% year-over-year and 4.6% quarter-over-quarter. “Q1 2024 was the most competitive quarter ever, with only 3% points separating the top six players in terms of market share,” said Counterpoint Senior Analyst Mengmeng Zhang.

Apple ranked third for smartphone market share in the world’s second-largest economy, commanding 15.7% of total sales (as opposed to 19.7% in the same quarter last year). Chinese OEMs vivo and HONOR took first and second place, respectively, with 17.4% and 16.1% of total sales.

“Apple’s sales were subdued during the quarter as Huawei’s comeback has directly impacted Apple in the premium segment. Besides, the replacement demand for Apple has been slightly subdued compared to previous years,” said Counterpoint Senior Research Analyst Ivan Lam.

Local giant Huawei made an astounding resurgence in the Chinese market, with its 5G-capable Mate 60 series giving Apple a tough challenge in the premium ($600 USD+) segment. Huawei’s market share grew a whopping 69.7% year-over-year during Q1.

Apple has been experiencing a sales slump in China for quite some time now, partly due to the country’s economy still reeling from the COVID-19 pandemic. The iPhone 15 received a somewhat lukewarm reception in China, and upgrade demand for Apple’s premium offerings has been on a downward slope.

That said, Apple’s performance in one of its most critical markets could turn around soon. “We are seeing slow but steady improvement from week to week, so momentum could be shifting,” added Lam. Back in January, Apple started offering rare discounts on the iPhone 15 series in China to help with the lacklustre demand.

“For the second quarter, the possibility of new color options combined with aggressive sales initiatives could bring the brand back into positive territory; and of course, we are waiting to see what its AI features will offer come WWDC in June. That has the potential to move the needle significantly longer term.”

Apple reportedly plans to introduce enhanced Siri and generative AI features at WWDC 2024, slated for June 10-14.

P.S. Help support us and independent media here: Buy us a beer, Buy us a coffee, or use our Amazon link to shop.