Wahala: iPhone sales in China fall nearly 20%

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Apple's sales in China took a hit, dropping by 19% in the first quarter, marking its sharpest decline since 2020. 

This drop was mainly due to increased competition from Huawei, with Apple slipping to third place in market share behind Vivo and Honor.

China's smartphone market saw a modest 1.5% growth in Q1, its second consecutive quarter of growth. During this period, Apple's market share decreased to 15.7%, down from 19.7% the previous year, nearly matching Huawei's share, which rose to 15.5%. 

Huawei's strong performance, with a 69.7% growth, was driven by its successful Mate 60 series, outselling Apple's iPhone 15 in China.

Apple faces challenges in China, its third-largest market, including reduced consumer spending and Huawei's resurgence in the premium segment. 

To counter this, Apple has been offering significant discounts on certain iPhone models in China, but demand hasn't met expectations.

Looking ahead, Counterpoint suggests that new iPhone models featuring AI capabilities and fresh designs could help Apple regain ground in China. 

Overall, the firm anticipates low single-digit growth in China's smartphone market until 2024.