Apple’s smartphone shipments in China shrank 2.1 p.c in the ultimate quarter of 2023 from the identical year-ago interval, harm by intensifying competitors from native rivals led by Huawei, information from analysis agency IDC confirmed on Thursday.
The drop underscores the challenges dealing with the US agency in its third greatest market, as some Chinese corporations and authorities companies restrict workers’ use of Apple gadgets, a measure that mirrors US authorities restrictions on Chinese 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 in the world’s greatest smartphone market that grew simply 1.2 p.c in the ultimate quarter of 2023.
Huawei’s shipments elevated 36.2 p.c in the final quarter of the 12 months, the IDC figures confirmed. The firm turned the fourth largest smartphone vendor in China in 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, nevertheless, Apple overtook Vivo to change into the highest smartphone vendor with a 17.3 p.c market share, based on IDC. This marks the primary time Apple turned the highest vendor in China, however analysts predict its gross sales will come below stress 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 diminished 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 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 major rise from fewer than 35 million items projected for 2023.
Overall, cargo quantity in China’s smartphone market was 73.63 million items in the fourth quarter. For the complete 12 months, cargo quantity was 271 million items, down 5 p.c, IDC mentioned.
Apple releases its quarterly outcomes subsequent week.
© Thomson Reuters 2024
