Apple’s iPhone Sales in China Dropped 24%
$Apple(AAPL.US$has experienced a significant 24% drop in iPhone sales in China during the first six weeks of this year, according to Counterpoint Research. This decline adds to the challenges facing the iPhone, which has struggled in the world’s largest smartphone market, where the overall mobile market contracted by 7%.
Vivo, a budget-oriented brand, emerged as the market leader during this period. In response, Apple initiated rare discounts on its web store, with some online resellers reducing prices by up to $180.
Consequently, Apple has lost its status as the world’s most valuable company to Microsoft Corp.
The sales slump coincides with an 18% decrease in revenues reported by iPhone assembly partner Hon Hai Precision Industry Co. for the first two months of the year, a critical concern since the iPhone represents over half of Apple's sales. Despite this, Apple's recent earnings report indicated a return to revenue growth in the holiday quarter, albeit with a warning of sluggish performance in the current period.
Amid these challenges, Apple is shifting its focus towards diversifying its product lineup and investing in artificial intelligence. This strategic pivot includes the development of its Vision Pro headset and competing in the generative AI industry, following the discontinuation of its electric car project.
They recently unveils its next-generation M3 MacBook Air in 13-inch and 15-inch models, boasting the M3 chip with enhanced CPU and GPU performance, a 16-core Neural Engine, and support for Wi-Fi 6E. Unique to this series is the ability to connect two external displays, albeit only in clamshell mode. Priced from $1099 for the 13-inch and $1299 for the 15-inch, with educational discounts available, these models maintain the design of the M2 version and introduce a fingerprint-resistant midnight colorway.
In the Chinese smartphone market, Apple has fallen to fourth place in market share, overtaken by Huawei Technologies Co. and Honor Device Co., with Huawei's Mate 60 Pro series spurring patriotic buying among Chinese consumers. Despite these setbacks, promotional efforts around Women’s Day hint at Apple's short-term strategies to regain ground.
Apple's response includes subsidizing iPhone models on Tmall and offering discounts on its official site, attempting to counteract the competitive pricing strategies of its rivals. However, these efforts have yet to stem the loss of market share, underlining the challenges Apple faces amidst a broader economic slowdown and heightened competition in the high-end smartphone segment in China.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
- YouTube finance content creator (>50k subs)
- Specializes in US stock and ETF investments
- Huge fan of Tech companies
18KFollowers
5Following
34KVisitors
Follow