Apple’s smartphone shipments in China fell 2.1 per cent in the fourth quarter of 2023 compared to the same time a year ago, hampered by increased rivalry from local rivals headed by Huawei, according to IDC statistics released on Thursday.
The reduction highlights the hurdles that the US business has in its third-largest market, as some Chinese enterprises and government agencies ban employees’ use of Apple devices, mirroring US government prohibitions on Chinese software on security concerns.
Huawei, whose smartphone company was ravaged by US sanctions, also made a comeback last year with new releases, increasing competitiveness in the world’s largest smartphone market, which expanded by just 1.2 per cent in the fourth quarter of 2023.
According to IDC estimates, Huawei’s shipments climbed by 36.2 per cent in the fourth quarter of the year. In the period, the business grew to become China’s fourth largest smartphone provider, with a 13.9 per cent market share, up from 10.3 per cent the year prior.
Apple will overtake Vivo as the top smartphone vendor in 2023, with a 17.3 per cent market share, as per IDC. This is the first time Apple has been the top seller in China, although analysts believe sales will fall again this year, IDC
IDC stated that competing goods and Apple’s restricted product updates have had an influence on Apple’s high-end market share in China, reducing the overall appeal of iPhones.
It claimed Apple still received demand from many consumers through considerable discounts and promotions put out through third-party distribution channels.
Earlier last month, Apple provided uncommon iPhone discounts, lowering retail prices by up to 500 yuan (USD 70) in response to rising competition.
Jefferies analysts projected earlier this month that Apple’s shipping volumes will continue to fall by double digits in 2024, while Huawei is expected to increase its market share.
They predict Huawei will ship over 64 million smartphones worldwide in 2024, a huge increase from the fewer than 35 million devices expected for 2023.
Overall, shipping volume in China’s smartphone market was 73.63 million units in Q4. The total shipping volume for the year was 271 million units, a 5 per cent decrease, according to IDC.
