Apple’s flagship device, the iPhone, is struggling in China, with sales plummeting this year. As a response, Apple CEO Tim Cook is desperately attempting to turn the tables by taking a pro-China stance.
According to the global market research firm Counterpoint Research on the 1st, iPhone sales in the Chinese market fell by 24% in the first six weeks of 2024.
While the overall smartphone sales in China decreased by 7% compared to last year, indicating a hostile market atmosphere, industry insiders believe that several factors Apple is currently facing have impacted the sharp decline in iPhone sales.
Meng Meng Zhang, an analyst at Counterpoint Research, explained, “The Apple iPhone is under pressure due to aggressive pricing policies from Chinese companies such as Oppo, Vivo, and Xiaomi, and is facing fierce competition in the high-end segment from Huawei.”
Zhang further analyzed, “The iPhone 15 is an excellent device, but consumers think it’s okay to use the previous generation iPhones for the time being because there are no significant upgrades compared to the previous model.”
Also, due to a disruption in iPhone production at the end of 2022, the sales that should have come out in December 2022 were pushed to early 2023, resulting in an unusually high sales figure in the first six weeks of 2023. This counter-base effect seems to have contributed to the negative growth rate compared to last year.
As iPhone shipments in February also fell by 33% compared to last year and the performance in the Chinese market continues to deteriorate, Apple has embarked on a full-scale pro-China campaign.
It has been offering unusual discounts on the iPhone 15 since the end of last year. The fact that Apple, which rarely lowers its prices, has reduced the cost of its new product is a testament to how seriously it views the sales slump in China.
Apple CEO Tim Cook has also stepped up. During a recent visit to an Apple Store that opened in Shanghai, he declared, “I love China; I love the Chinese people and their culture.” He has been increasing his engagement with China, including attending the China Development Forum in Beijing.
However, despite Apple’s efforts, it is predicted that reversing the atmosphere will be difficult for the time being.
Ivan Lam, an analyst at Counterpoint Research, said, “To stabilize the market, consumer confidence needs to increase, but currently, it is a difficult situation in all aspects, including the real estate market slump.”
Market research firm Canalys also had a negative outlook: “China is still digesting the iPhone shipments from the fourth quarter of 2023. This indicates that iPhone shipment trends in China will slow down in the coming months.”