According to Android Authority , the latest report from Counterpoint shows that iPhone sales have dropped significantly (24%) in the first 6 weeks of 2024. At the same time, the Chinese smartphone market itself has also seen a 7% decline during this period. However, it seems that domestic brands like Vivo and Oppo are leading the way by targeting the low-cost segment.
Falling sales force Apple to cut iPhone prices in China
For its part, Apple tried to boost sales in China by offering rare discounts on its online store in January. Some online retailers even slashed the price of the iPhone 15 by as much as $180. Despite that, Apple’s market share ultimately fell below 16%, down from 19%. The decline also affected Apple’s partners, with iPhone assembler Hon Hai Precision Industry reporting an 18% drop in sales in the first two months of 2024.
Meanwhile, Huawei, Apple's main competitor in the premium smartphone segment in China, saw a significant 64% increase in sales during the same period. Huawei's resurgence is believed to have been fueled by the successful launch of its Mate 60 Pro devices in the country. Thanks to a wave of patriotic buying among the people, Huawei's market share in China increased from 9.3% to 16.5%.
In addition, the extremely attractive prices of domestic brands such as Oppo, Vivo and Xiaomi in the mid-range segment may further reduce iPhone sales. Senior analyst Mengmeng Zhang pointed out in the report: "Although the iPhone 15 is a great device, it does not have any significant upgrades compared to the previous version, so consumers feel fine with continuing to use the old generation models at the present time."
On the positive side, Apple's latest earnings report showed some resilience as iPhone sales were stronger in Q4 2023 and revenue growth picked up again.
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