Last Updated: January 26, 2024, 10:26 IST
Apple is dealing with robust competitors in China.
Apple’s excessive-finish market share in China has been impacted by rival merchandise and restricted product upgrades by Apple which lowered the general attractiveness of iPhones.
Apple’s smartphone shipments in China shrank 2.1% in the ultimate quarter of 2023 from the identical yr-in the past interval, damage by intensifying competitors from native rivals led by Huawei, knowledge from analysis agency IDC confirmed on Thursday.
The drop underscores the challenges dealing with the U.S. agency in its third greatest market, as some Chinese corporations and authorities companies restrict workers’ use of Apple gadgets, a measure that mirrors U.S. authorities restrictions on Chinese apps on safety grounds.
Huawei, whose smartphone enterprise was decimated by U.S. sanctions, additionally made a comeback final yr with new launches, intensifying competitors in the world’s greatest smartphone market that grew simply 1.2% in the ultimate quarter of 2023.
Huawei’s shipments elevated 36.2% in the final quarter of the yr, the IDC figures confirmed. The firm grew to become the fourth largest smartphone vendor in China in the interval with a 13.9% market share, up from 10.3% in the identical yr-in the past quarter.
For the total yr 2023, nonetheless, Apple overtook Vivo to develop into the highest smartphone vendor with a 17.3% market share, in line with IDC. This marks the primary time Apple grew to become the highest vendor in China, however analysts predict its gross sales will come below stress once more this yr.
IDC stated Apple’s excessive-finish market share in China has been impacted by rival merchandise and restricted product upgrades by Apple which lowered the general attractiveness of iPhones.
It stated Apple nonetheless attracted demand from many shoppers by substantial reductions and promotions carried out by third-occasion distribution channels.
Earlier this month, Apple provided uncommon reductions on its iPhones, slicing retail costs by as a lot as 500 yuan ($70) amid rising aggressive stress.
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 big rise from fewer than 35 million models projected for 2023.
Overall, cargo quantity in China’s smartphone market was 73.63 million models in the fourth quarter. For the total yr, cargo quantity was 271 million models, down 5%, IDC stated.
Apple releases its quarterly outcomes subsequent week.
(This story has not been edited by News18 workers and is revealed from a syndicated information company feed – Reuters)
