Apple’s grip on the Chinese smartphone market has loosened as iPhone sales down by 24% in the first six weeks of 2024 compared to the same period in 2023 . This significant drop is due to a confluence of factors:
- Players in Market: Huawei, a dominant player before facing US sanctions, is making a strong comeback. Their sales skyrocketed by 64% during the same period, posing a major threat to Apple’s market share [Investopedia].
- Heating Up Competition: Domestic Chinese brands like OPPO, Vivo, and Xiaomi are offering feature-packed phones at competitive prices, especially in the mid-range segment. This is making it harder for Apple to maintain its hold in that market share [Investopedia].
- Innovation Stagnation: Some reports suggest that consumers might be feeling underwhelmed by the latest iPhone 15. A lack of significant upgrades compared to previous models could be leading to less enthusiasm for iPhone upgrades.
- Economic Headwinds: A sluggish Chinese economy and a dip in consumer confidence might also be contributing to the decline in iPhone sales
Last night, Apple CEO Tim Cook visited the Taikoo Li commercial street in Chengdu, a city in southwestern China.
— ShanghaiPanda (@thinking_panda) October 17, 2023
I can’t even remember how many times he went on a business trip to China this year.
Anyway, China’s market is too important for Apple, especially after Huawei returns. pic.twitter.com/22rghgAHJG
Why Tim Cook Visited China?
- Reassurance and Investment: They wanted to reassure the Chinese government of Apple’s long-term commitment to China, despite declining sales. This included promises of increased investment in research and development.
- Maintaining Market Access: China is a critical market for Apple and facing competition from local companies. The visit aimed to secure continued access to this market.
- Supply Chain and Trade Relations: Discussions with Chinese officials likely focused on smoothening trade relations between the US and China, which could impact Apple’s supply chain.
- Sustainability Efforts: Highlighting AI’s role in reducing carbon footprint might have been a way to connect with China’s environmental goals.