Apple, which recently began offering rare iPhone discounts in China to boost sales, is struggling to keep up sales with local rivals. As per data released by a government-affiliated research firm – the China Academy of Information and Communications Technology (CAICT) – foreign smartphone brands appear to be facing challenges in maintaining market share within the country, as shipments of these phones fell by 47.4% in November compared to the same month the previous year.
In the list, Apple emerges as a major player, marking the fourth consecutive month of declining sales, which suggests an ongoing trend rather than a one-time issue. The latest data reveals that shipments of foreign brands dropped to 3.04 million units in November 2024, down from 5.769 million units in the same month last year. Notably, total phone shipments within China, including domestic brands, declined by 5.1% year-on-year in November, reaching 29.61 million units.
Local brands like Xiaomi, Oppo, and especially Huawei are giving tough competition to Apple. The company, currently unable to offer AI features in its iPhones due to Chinese government restrictions, is facing significant challenges in the country. A continued drop in sales in a major market like China could hurt Apple’s revenue and overall growth prospects.
However, the Cupertino-headquartered company is reportedly in talks with Chinese multinational tech conglomerate Tencent and TikTok owner ByteDance to roll out AI features. As mentioned earlier, Apple is offering a rare discount in China for four days, from January 4 to 7. Under this promotion, the company is offering a maximum discount of 500 yuan on its flagship phones, the iPhone 16 Pro (starting from 7,999 yuan) and iPhone 16 Pro Max (starting from 9,999 yuan), along with other models and categories.
These actions for revival have become even more critical for Apple, as recent IDC data reveals a 0.3% decline in the company’s smartphone sales in China during Q3 2024. Meanwhile, Huawei saw a significant 42% increase in sales during the same period. Apple’s revenue in China for Q3 2024 dropped to $15.03 billion, compared to $15.08 billion in the same quarter the previous year.
Additionally, the company’s annual revenue from China decreased by 7.7%, totaling $66.95 billion. In contrast, global sales grew by 6.1%, reaching $94.9 billion for the same period. While some believe that Apple’s sales drop in China is due to the lack of AI features and pricing issues, others think that rising tensions between the U.S. and China may be causing consumers to favor domestic brands like Huawei.
There is no doubt that China has been a tough market for overseas companies due to multiple restrictions. However, the case is different for Apple, as it is one of the few foreign brands that had also witnessed a stronghold in the country just a few years ago. Even in 2023, Apple captured a record 17.3% share of shipments in the Chinese smartphone market.
