Apple’s smartphone shipments in China shrank 2.1 % within the remaining 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 firms and authorities businesses restrict staff’ 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 on the earth’s greatest smartphone market that grew simply 1.2 % within the remaining quarter of 2023.
Huawei’s shipments elevated 36.2 % within the final quarter of the 12 months, the IDC figures confirmed. The firm grew to become the fourth largest smartphone vendor in China within the interval with a 13.9 % market share, up from 10.3 % in the identical year-ago quarter.
For the total 12 months 2023, nevertheless, Apple overtook Vivo to grow to be the highest smartphone vendor with a 17.3 % market share, in line with IDC. This marks the primary time Apple grew to become the highest vendor in China, however analysts predict its gross sales will come beneath strain once more this 12 months.
IDC stated 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 stated Apple nonetheless attracted demand from many customers by substantial reductions and promotions carried out by third-party distribution channels.
Earlier this month, Apple supplied uncommon reductions on its iPhones, reducing retail costs by as a lot as CNY 500 ($70 or roughly Rs. 5,800) amid rising aggressive strain.
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 within the fourth quarter. For the total 12 months, cargo quantity was 271 million items, down 5 %, IDC stated.
Apple releases its quarterly outcomes subsequent week.
© Thomson Reuters 2024
