Apple is grappling with a sobering reality in China as its iPhone sales nosedive by 10% year-over-year in Q3 2023.
A comprehensive look by Counterpoint at China’s smartphone market, which has only declined by 3%, suggests that the iPhone’s dip is not solely a symptom of market contraction.
The big plot twist? Huawei’s staggering resurgence is adding fuel to the fire.
While other brands like Mi and Honor registered modest growth, Huawei’s 37% sales growth stands in stark contrast and points to a recovering brand ready to challenge Apple head-on.
Huawei’s latest premium model, the Mate 60 Pro, is a key player in this comeback story and could be a significant reason behind iPhone’s dwindling sales numbers in China.
The Apple-Huawei rivalry took center stage in 2014 when the iPhone 6 was launched with a larger screen, appealing to Chinese consumers.
Huawei responded with competitive pricing and patriotic marketing, achieving market dominance until U.S. sanctions disrupted its momentum in 2020.
Apple capitalized on this, but with Huawei making a comeback, the iPhone is under renewed pressure.
With a 10% dip in sales in a single quarter, questions arise about the iPhone’s longer-term standing in the Chinese market.
The next quarter’s data will be pivotal, particularly in light of Huawei’s return to form.
The 10% decline in iPhone sales in China is a combination of factors. While the data only includes the first week of new iPhone sales, Huawei’s remarkable 37% sales growth with its new Mate 60 Pro also plays a significant role.
Huawei’s resurgence is largely attributed to the launch of its first premium model in three years, the Mate 60 Pro. This new model has rekindled interest in the brand, allowing it to capture a significant share of the premium smartphone market in China.
The overall smartphone market in China contracted by 3% year-over-year. However, the iPhone’s 10% sales decline is notably higher, indicating specific challenges for Apple beyond just a shrinking market.
The upcoming quarter will be crucial in determining whether the iPhone’s sales decline is an isolated incident or the beginning of a declining trend. Huawei’s resurgence adds an element of uncertainty, making it a space to watch closely.
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