The iPhone and Apple are losing ground in China, where a manufacturer that we had almost forgotten is making a strong comeback.
Apple’s iPhone 15 has not had the expected success in China. Sales have seen a drop compared to the previous model, and the phenomenon is partly due to fierce competition from a certain Huawei, the Chinese giant, determined to bite the apple within the Middle Kingdom.
iPhone sales down sharply in China
For Apple, China is a crucial market, since it generates around 20% of its annual turnover there. However, the latest sales data suggests that the iPhone 15 has failed to capture the attention of Chinese consumers in the same way as previous models.
The iPhone’s poor performance can be explained by fierce competition from Huawei, which has strengthened its presence on the local market with its Mate 60 range, despite supply problems.
The figures from the GfK analyst, relayed by Bloomberg, highlight the difficult context for Apple in China. During the launch month, sales of the iPhone 15 were down 6% compared to those of the iPhone 14 over the same period. And this data is corroborated by estimates from the very serious firm IDC, which indicate a 4% drop in Apple deliveries in the third quarter of 2023 in China.
The giant Apple finds itself, almost in spite of itself, in the middle of multiple diplomatic hiccups
Apple is today concerned by the rise of Huawei in China. The American brand clearly sees that the Mate 60 range from the Shenzhen firm has been a resounding success, selling twice as much as the previous year, with 1.5 million copies sold in one month. Huawei’s performance is all the more impressive as it, like the others, experienced supply difficulties.
But declining sales in China are no longer Apple’s only concern. The Cupertino company must face persistent tensions between the United States and China. Latest subject of contention to date: the use of iPhone has reportedly been banned at certain levels of Chinese ministries. The government has also launched a tax investigation against Foxconn, Apple’s largest supplier, based in Taiwan, which is known to have tensions with Beijing.
From a market point of view, the smartphone market is on a downward trend, let us remember. The third quarter of 2023 was the weakest in a decade, in terms of sales volume.
Source : Bloomberg
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