iPhone Shipments Dip 2% in China’s Q4 Amid Huawei Surge

• Apple’s Q4 2023 iPhone shipments fell 2.1% amid Huawei’s 36.2% surge.
• Huawei grabbed 13.9% in China’s Q4 2023 smartphone market.
• Apple led in 2023 with 17.3% but faces 2024 challenges from competition and upgrades.

In the final quarter of 2023, Apple faced a 2.1% decline in iPhone shipments in China compared to the same period the previous year, according to data from research firm IDC. This dip is attributed to the intensifying competition from local rivals, primarily Huawei, which experienced a remarkable 36.2% increase in smartphone shipments during the same quarter.

The resurgence of Huawei, despite previous setbacks due to U.S. sanctions, has added to the challenges for Apple in its third-largest market. The competition has been fueled by new launches from Huawei, contributing to the overall growth of just 1.2% in China’s smartphone market in the final quarter of 2023.

Although Huawei’s smartphone business faced challenges due to U.S. sanctions, the company managed to secure a 13.9% market share in the last quarter of 2023, up from 10.3% in the same period the previous year. This positioned Huawei as the fourth-largest smartphone vendor in China.

For the entire year of 2023, Apple overtook Vivo to become the top smartphone seller in China with a 17.3% market share, marking the first time the U.S. tech giant achieved this milestone. However, analysts predict that Apple may face renewed sales pressure in the coming year, with IDC noting that the high-end market share of iPhones in China has been impacted by rival products and limited product upgrades.

IDC also highlighted that Apple managed to attract demand through substantial discounts and promotions conducted through third-party distribution channels. In response to growing competitive pressures, Apple recently offered rare discounts on its iPhones, reducing retail prices by as much as 500 yuan ($70).

Looking ahead, Jefferies analysts anticipate a double-digit decline in Apple’s shipment volumes in 2024, while Huawei is expected to strengthen its market share further. Huawei is projected to ship around 64 million smartphones worldwide in 2024, a significant increase from the estimated 35 million units in 2023.

The overall shipment volume in China’s smartphone market for the fourth quarter was 73.63 million units, and for the full year, it reached 271 million units, reflecting a 5% decrease, according to IDC. Apple is set to release its quarterly results next week, providing further insights into its performance in the Chinese market.

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