In the first quarter of 2024, iPhone sales in China slid 19.1% compared to Q1 2023. And that’s mainly due to competitor Huawei taking a bigger bite in the premium segment, according to new research. And yet analysts indicated possible signs of recovery for Apple, too.
iPhone sales in China slide, but momentum could shift in Apple’s favor
Analysts cited Huawei’s resurgence in premium handset sales (devices priced at $600 and above) as the major factor in Apple’s sales slide, according to Counterpoint Research. Huawei saw 69.9% growth in the quarter as Apple slid 19.1%.
“Apple’s sales were subdued during the quarter as Huawei’s comeback has directly impacted Apple in the premium segment,” said Counterpoint’s senior research analyst, Ivan Lam. “Besides, the replacement demand for Apple has been slightly subdued compared to previous years.”
The overall smartphone market in China saw a second consecutive quarter of growth, though at a modest rate of 1.5%. Analysts credited strong sales from China-based companies like Huawei, which launched its Mate 60 series handsets recently.
In terms of market share for the quarter, Vivo stood at the top of the list at 17.4$, followed by Honor with 16.1% and Apple at 15.7%.
On its February 1 earnings call, Apple noted a 13% iPhone sales drop in China year-over-year.
Glimmers of hope seen in AI development
Although Apple has seen ups and downs in its China sales, Counterpoint’s Lam sees signs of a momentum shift in Apple’s favor and reason for hope of a lasting recovery.
“We are seeing slow but steady improvement from week to week, so momentum could be shifting,” he said.
He pinned longer-term hopes largely on what Apple announces regarding artificial intelligence features at WWDC in June.
“For the second quarter, the possibility of new color options combined with aggressive sales initiatives could bring the brand back into positive territory. And of course, we are waiting to see what its AI features will offer come WWDC in June,” he said. “That has the potential to move the needle significantly longer term.”
