Apple’s iPhone Sales in China Slump 19% in Q1 2024
Shanghai, China – Apple’s iPhone sales in China plunged 19% in the first quarter of 2024, marking the worst performance for the smartphone since the initial shock of the COVID-19 pandemic in early 2020, Bloomberg News reported.
The U.S. company fell to third place in the fiercely competitive market, trailing fast-growing rival Huawei, according to estimates from Counterpoint Research. The broader market expanded by about 1.5% over the same period, with domestic brands such as Honor and Xiaomi leading the gains.
The weakness for iPhones was notable because the first quarter included the Chinese New Year holiday, traditionally a peak spending period. In contrast, Huawei surged nearly 70%, underscoring its resurgence in the premium segment that Apple once dominated.
Counterpoint’s data, corroborated by analysis from IDC, suggests that global iPhone sales declined by almost 10% in the first three months of 2024, raising concerns about Apple’s ability to sustain growth as it prepares to report earnings on May 2.
China remains one of the company’s largest markets, but doing business there has become more difficult after Beijing stepped up a drive to ban foreign equipment from state-owned companies and government agencies. Consumers are also embracing Huawei’s high-profile comeback after the company introduced a domestically produced chip that U.S. sanctions had sought to prevent.
Counterpoint’s figures provide the first full picture of the first quarter. Last month, the research firm gave a preliminary estimate that iPhone sales in China had fallen roughly 24% in the first six weeks of 2024.
The iPhone maker resorted to “unusually large” discounts in January in China to help move the latest generation of devices. Its retail partners in the country offered deals shaving as much as $180 off the regular price.
“Apple’s shipments declined significantly this quarter as Huawei’s strong comeback directly impacted Apple in the high-end segment,” said Ivan Lam, senior analyst at Counterpoint. “In addition, the iPhone replacement cycle has also slowed down slightly compared with previous years.”
