The latest report from Jefferies analysts, led by Edison Lee, suggests a continued decline in iPhone sales in China with volumes expected to shrink further in the coming year.
The company’s latest generation experienced an unusually sluggish start in the Chinese market, culminating in a 30% year-on-year decline, according to industry checks cited by Jefferies.
The competitive surge from Huawei Technologies Co., particularly fueled by its new Mate 60 device lineup, played a pivotal role in reshaping China’s mobile market.
Huawei’s strategic debut of the Mate 60 Pro, equipped with a domestically produced system processor, triggered a patriotic fervor, enticing consumers and reclaiming some of the ground previously lost to Apple.
The report indicates that Huawei, overcoming supply constraints, managed to ship an estimated 35 million smartphones in 2023.
This robust performance contributed to Huawei’s resurgence in the Chinese mobile market, challenging Apple’s share.
Apple, on the other hand, faced a double-digit drop in iPhone volumes in December. Jefferies analysts project a continuation of this downward trend throughout 2024.
Despite efforts to stimulate growth through increased discounts on Apple’s smartphone range, the average selling price saw a decrease without a corresponding surge in volume.
The backdrop of US sanctions severely impacting Huawei’s access to global chipmakers in 2020 initially boosted Apple’s market share in China.
However, Huawei’s successful return to competitiveness, coupled with the development of its own software ecosystem, poses a formidable challenge to Apple’s dominance in the region.
As the competition intensifies, Apple navigates the intricate dynamics of the Chinese smartphone market in the coming months.
