iPhone sales decline as Chinese users switch to Huawei and other brands

iPhone sales decline as Chinese users switch to Huawei and other brands

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In recent years, Apple has faced a decline in iPhone sales in the Chinese market, which has been crucial for the tech giant’s global revenue.

The dominant position of Apple’s iPhone in China faces a challenge due to fierce competition from local brands, especially Huawei, as Chinese consumers increasingly choose domestic products amid geopolitical tensions with the West.

According to UBS data, iPhone sales dropped by 4 percent year-on-year in February. The company shipped a total of 17.4 million units worldwide, down from 18.1 million units in February 2023.

UBS also revealed that the major decline occurred in China, India, and the United States. Analysts at Counterpoint highlighted a significant shift in the Chinese smartphone market, with Apple witnessing a 24 percent decline in sales in the first six weeks of 2024 compared to the same period last year.

This decline is attributed to the increasing market share of local smartphone brands such as Huawei, Xiaomi, Vivo, and OPPO, which have managed to capture a larger portion of the market.

iPhone sales decline as Chinese users switch to Huawei and other brands

UBS report showed a 16 percent year-on-year decline in iPhone sales in China, reflecting the growing dominance of local brands and the challenges Apple faces in maintaining its market share.

The report also pointed out that local smartphone brands in China, such as Huawei, Xiaomi, Vivo, and OPPO, continued to increase their market share. This puts significant pressure on Apple to devise a strategy and regain its position.

Furthermore, iPhone sales in the Indian market also declined by 13 percent year-on-year. This is also a serious challenge for Apple’s CEO, Tim Cook.

Earlier data from Counterpoint Research showed a 24 percent year-on-year decline in iPhone sales in the first six weeks of this year.

In comparison, Huawei, a long-time competitor of Apple in China, saw a 64 percent increase in its smartphone sales.

Over the past decade, China has been one of the most important iPhone markets outside the United States, accounting for about 20 percent of Apple’s global sales.

However, Apple’s dominance in the Chinese market faces serious challenges, mainly due to slowing consumer spending and increased competition from local brands like Huawei.

While Apple struggles with declining sales, Huawei has seen a significant 64 percent increase in smartphone sales in China, indicating a strong preference among Chinese consumers for local brands.

Huawei’s success can be attributed to factors such as the launch of its fifth-generation Mate 60 smartphone series, which resonated well with consumers after the company overcame challenges related to Western sanctions.

The significant increase in Huawei’s sales not only did not affect Apple’s position in the market but also highlighted changing consumer preferences in China, where loyalty to local brands is growing.

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