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Apple iPhone sales declined by 19 percent in China, know the reason

There could be several reasons for the decline in iPhone sales, with one significant factor being the government’s ban on employees using Apple devices, which has notably impacted the company’s sales.

In the first quarter of 2024, Apple encountered significant challenges in the Chinese smartphone market. Despite a global surge in smartphone shipments, Apple reported a sharp 19 percent decline in iPhone sales in China, marking its worst performance since 2020. Consequently, its market share decreased from 19.7 percent to 15.7 percent compared to the previous year, causing Apple to fall to third place behind Vivo and Honor.

The decline in iPhone sales can be attributed to various factors. Apart from the government ban on Apple devices for employees, Huawei’s resurgence has also contributed to the market shift. Huawei witnessed a remarkable 69.7 percent increase in sales, driven by the successful launch of the high-end Mate 60 series, which propelled Huawei to fourth place in market share, capturing 15.5% of the market.

Additionally, low demand for Apple devices has played a role in the decline. Despite offering discount campaigns and subsidies of up to 1,300 yuan (approximately Rs 15,005) to attract customers in the Chinese market, Apple struggled to maintain its market share. However, Apple remains optimistic about a sales recovery in the second quarter of 2024.

Experts from Counterpoint Research suggest that there may be a turnaround in iPhone sales due to the introduction of new color options and improved sales initiatives. Investors are keenly awaiting Apple’s upcoming earnings report on May 2, hoping to gain insights into the company’s strategies to address challenges in China.

Apple is currently grappling with intense competition and regulatory hurdles in the Chinese market. Its response in the coming months will be pivotal in navigating these challenges and determining its future success in the world’s largest market.


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