Apple China 2024 Downturn: Huawei Rises in China

Apple's iPhone sales in China are projected to experience a significant downturn in 2024, facing intense competition from local brands, particularly Huawei, as per a recent analysis by Jefferies analysts.

Source: ABC News. 

Jefferies' early 2024 report indicated a sharp 30% drop in Apple's iPhone sales in China. The analysts predict this downward trend to persist throughout the year, with Apple's market share expected to shrink further in the face of robust competition from Huawei, which is continuously expanding its presence.

This observation by Jefferies aligns with reports from other global entities pointing to a slump in Apple's market performance in China.

The performance of Apple's iPhone 15 has been underwhelming compared to expectations. International Data Corporation (IDC) noted that Huawei, with its popular Mate 60 series, is likely to disrupt the market significantly, creating a "Catfish Effect" and challenging Apple's position.

Since the launch of the iPhone 15 in October, there's been a noticeable price drop for these models on key Chinese online platforms. The decline has been attributed to various factors, including overheating issues with the iPhone, aggressive marketing during major shopping events, and stiff competition from Android devices, according to industry experts.

Following the September release of Huawei's Mate 60 Series, the company has seen rapid growth in China, becoming the fastest-growing smartphone brand in the region.

The iPhone 15's price has seen a reduction exceeding 15% on major Chinese e-commerce sites like Pinduoduo and JD.com since October, as reported by Shanghai Daily.

January has seen Chinese brands like OnePlus, OPPO, Honor, and Xiaomi (which also announced its foray into electric vehicles) accelerating the launch of new models. These Android manufacturers are edging ahead with features like AI-driven systems and advanced on-device applications.

In contrast, Apple has faced criticism for its incremental updates focusing mostly on aesthetic changes like design, size, and camera improvements. Critics argue that Apple has not brought substantial functional innovations or enhancements in areas like signal reception and battery longevity.

Author: Zhu Shenshen 

Editor: Ditte van Dalen