Apple iPhone sales in China fall 30% in first week of 2024

U.S. investment bank Jefferies predicts
iPhone 15 sales to be hit by Huawei’s market return
“Last year’s unusual slump, double-digit decrease expected this year”

U.S. investment bank Jefferies has forecasted a deepening slump in Apple’s iPhone sales in China this year pointing out last year’s poor performance. The threat to Apple seems to be intensifying as Huawei Technologies which was shaken by U.S. sanctions is regaining its market competitiveness.

According to Bloomberg on the 8th (local time), Jefferies stated in a report, “The latest version of the iPhone had an unusual slump in China last year,” and “Recently, the estimated sales decrease compared to the previous year has expanded to 30%.”

The latest version Jefferies mentioned is the iPhone 15 series which was launched in September last year. Just before the launch of the iPhone 15, Huawei unveiled its Mate 60 Pro in China. The Mate 60 Pro became a hot topic as it was known to be equipped with a 7-nanometer (nm, one billionth of a meter) semiconductor, which the U.S. had sanctioned for export. Subsequently a wave of ‘patriotic consumption’ seems to have hit Apple.

Counterpoint Research previously announced that Huawei’s smartphone sales in China increased by 37% in the third quarter of last year when the Mate 60 Pro was launched, and the market share rose from 9.1% in 2022 to 12.9%. Huawei is estimated to have shipped 35 million smartphones last year alone.

As a result, Apple recorded a double-digit shipment decrease last month and Jefferies predicts a similar decrease this year.

Bloomberg explained, “Apple increased its market share in China in 2020 when Huawei could not receive semiconductors from TSMC and others due to U.S. sanctions,” and “Since then, Huawei has regained its market competitiveness and is now developing its software ecosystem to compete with Apple’s operating system.”

By. Dae Young Ko