Apple’s latest flagship, the iPhone 15, is experiencing lackluster sales in China, raising concerns for the tech giant in one of the world’s most critical markets. Market analysis from Counterpoint Research has revealed a 4.5 per cent drop in sales compared to its predecessor, the iPhone 14, during the first 17 days after its release.
A separate report from Jefferies analysts according to Bloomberg News indicates an even steeper double-digit decline, driven by strong sales of Huawei’s Mate 60 Pro.
The decline in iPhone sales can be attributed to a multitude of factors. Counterpoint Research, which provided the 4.5 per cent decline estimate, points to the economic struggles that China continues to face during its recovery from the COVID-19 pandemic. The economic uncertainty has curbed consumer demand for high-end smartphones like the iPhone 15.
Huawei Technologies, Apple’s major competitor in China, made a remarkable comeback with the launch of the Mate 60 Pro. This smartphone boasts an advanced processor made in China, which resonated well with consumers. As Huawei’s sales soared, it posed a significant challenge to Apple’s market position in the country.
To add to Apple’s woes in China, a government mandate expanded the ban on iPhone usage to government agencies and state-owned companies. This underscores the growing regulatory challenges that Apple is confronting in the Chinese market, which could further hinder its growth.
However, the situation in the United States appears to be more favourable for Apple, with strong initial sales of the iPhone 15. Market data indicates a double-digit increase in the first nine days of sales over the previous year. This contrasts with the Chinese market’s lackluster performance.
Analysts are divided on the long-term implications for Apple in China, which is the world’s largest smartphone arena. Many believe that Huawei’s resurgence and increasing prominence in the market may erode Apple’s dominance in the high-end smartphone segment. Counterpoint Research estimates that Huawei could potentially sell five to six million units of the Mate 60 Pro in China this year, a figure that could rise to double digits by 2024.
