Apple’s iPhone Sales Dip 24% in China, Falls to Fourth Place Behind Vivo and Huawei

Apple Inc’s (NASDAQ:AAPL) iPhone sales in China saw a 24% drop in the first six weeks of the year, demoting it to the fourth position among smartphone vendors in the country, as reported by Counterpoint Research .

This decline allowed Vivo, a Dongguan-based company proficient in catering to the budget segment, to overtake Apple as China’s top smartphone seller.

Despite both companies experiencing sales drops, the overall smartphone market in China also contracted by 7%, dampening expectations of a quick market recovery, Bloomberg reports.

Huawei Technologies Co capitalized on the success of its Mate 60 Pro series and a surge in nationalistic purchasing, increasing its market share to 16.5% from 9.4%.

Honor Device Co., which separated from Huawei in 2020, was the only other major manufacturer to achieve growth in unit sales, with a modest 2% increase.

Meanwhile, Apple’s market share dwindled to 15.7% from 19% the previous year.

A general market downturn has hindered the iPhone’s performance in China.

In response, Apple introduced uncommon discounts on its website in January, and online resellers have reduced prices by up to $180. Counterpoint analyst Ivan Lam noted that despite declining consumer confidence, Huawei managed to satisfy the demand for its popular Mate 60 series due to improved production capabilities.

Lam highlighted that the period compared was already low for sales, but Apple still has some flexibility to stimulate demand, as demonstrated by aggressive promotions ahead of Women’s Day.

Previous reports indicated Apple offering the iPhone 15 series at steep discounts in China by resellers, highlighting a dip in demand.

Apple’s sales in China declined by 13% to $20.8 billion in the December quarter, marking its weakest performance.

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