iPhone Sales Plunge in China While Huawei Sees Significant Growth
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According to a March 5 report by Fox Business, the latest research from Hong Kong-based Counterpoint Technology Market Research reveals that Apple's iPhone sales in China had a weak start this year, with a 24% year-on-year decline in the first six weeks.
Analysts attribute the drop in iPhone sales primarily to fierce market competition, especially from Huawei, which saw a 64% surge in smartphone sales during the same period.
Senior analyst Zhang Mengmeng (name transliterated) from Counterpoint stated in a release: "Primarily, Apple faces intense competition from Huawei's resurgence in the high-end market, while in the mid-range segment, it is squeezed by aggressive pricing from brands like OPPO, vivo, and Xiaomi."
Zhang added: "Although the iPhone 15 is an excellent device, it lacks significant upgrades compared to its predecessor, making consumers feel comfortable sticking with older models for now."
Apple's stock fell 3% on Tuesday and has dropped about 10% year-to-date, underperforming other major U.S. tech companies.
Counterpoint's report indicates that Apple's share of China's smartphone market has declined to 15.7%, ranking fourth, compared to 19% and second place a year ago.
Driven by global iPhone growth, Apple's sales and profits last quarter exceeded Wall Street expectations, but notably, its performance in China lagged.
Apple CEO Tim Cook told Reuters in an interview last month: "We were pleased with iPhone's 6% revenue growth. Outside China, emerging markets saw particularly strong double-digit growth for iPhone. The iPhone is performing well in these markets."
Cook added: "China remains the world's most competitive smartphone market—that hasn't changed."