Apple’s smartphone shipments in China shrank 2.1 p.c within the remaining quarter of 2023 from the identical year-ago interval, damage by intensifying competitors from native rivals led by Huawei, knowledge from analysis agency IDC confirmed on Thursday.
The drop underscores the challenges going through the US agency in its third greatest market, as some Chinese language firms and authorities companies restrict workers’ use of Apple gadgets, a measure that mirrors US authorities restrictions on Chinese language apps on safety grounds.
Huawei, whose smartphone enterprise was decimated by US sanctions, additionally made a comeback final 12 months with new launches, intensifying competitors on this planet’s greatest smartphone market that grew simply 1.2 p.c within the remaining quarter of 2023.
Huawei’s shipments elevated 36.2 p.c within the final quarter of the 12 months, the IDC figures confirmed. The corporate grew to become the fourth largest smartphone vendor in China within the interval with a 13.9 p.c market share, up from 10.3 p.c in the identical year-ago quarter.
For the complete 12 months 2023, nonetheless, Apple overtook Vivo to turn into the highest smartphone vendor with a 17.3 p.c market share, in response to IDC. This marks the primary time Apple grew to become the highest vendor in China, however analysts predict its gross sales will come beneath strain once more this 12 months.
IDC mentioned Apple’s high-end market share in China has been impacted by rival merchandise and restricted product upgrades by Apple which lowered the general attractiveness of iPhone fashions.
It mentioned Apple nonetheless attracted demand from many shoppers by means of substantial reductions and promotions carried out by means of third-party distribution channels.
Earlier this month, Apple provided uncommon reductions on its iPhones, chopping retail costs by as a lot as CNY 500 ($70 or roughly Rs. 5,800) amid rising aggressive strain.
Jefferies analysts predicted earlier this month that Apple’s cargo volumes would proceed declining by double digits in 2024, whereas Huawei is seen bolstering its market share.
They estimate Huawei will ship round 64 million smartphones worldwide in 2024, a major rise from fewer than 35 million models projected for 2023.
General, cargo quantity in China’s smartphone market was 73.63 million models within the fourth quarter. For the complete 12 months, cargo quantity was 271 million models, down 5 p.c, IDC mentioned.
Apple releases its quarterly outcomes subsequent week.
© Thomson Reuters 2024
