Apple, $AAPL, iPhone sales in China fall 30% in first week of 2024

Apple, $AAPL, iPhone sales in China fall 30% in first week of 2024

The primary driver behind the significant double-digit decrease in China's smartphone shipments during the first week was the decline in Apple's sales, according to a note released by the brokerage on Sunday.

Despite aggressive discounting of various iPhone models on major Chinese online marketplaces, Apple experienced a 30% drop, accelerating from the 3% year-over-year decline observed throughout 2023 in its third-largest market. Jefferies analysts attribute Apple's decline to intense competition from Chinese counterparts, particularly Huawei, which launched its Mate 60 series in August, marking a comeback to the high-end smartphone market after U.S. sanctions. Huawei's market share in China rose by about 6% in the final quarter of 2023, with analysts anticipating further competitive pressure on Apple from domestic rivals in 2024.

The forecast predicts Apple's shipment volumes will continue to decline by double digits, while Huawei is expected to gain market share, shipping around 64 million smartphones globally in 2024. Despite a years-long slump, the Chinese smartphone market is anticipated to rebound, with IDC forecasting year-on-year sales growth in the fourth quarter after ten consecutive quarters of falling shipments.