A notable decline of 19.9 percent in Apple smartphone sales during the first quarter (Q1) of 2024 in China. Counterpoint Research attributed this drop to the resurgence of Huawei in the premium segment.
Senior Research Analyst Ivan Lam noted, "Apple’s sales were subdued during the quarter as Huawei’s comeback has directly impacted Apple in the premium segment. Besides, the replacement demand for Apple has been slightly subdued compared to previous years."
Senior Analyst Mengmeng Zhang emphasized the fierce competition in the market, with only a narrow three percent gap separating the top six players in terms of market share. She highlighted the strategy of Chinese OEMs, leveraging cost-effective offerings to capitalize on the surge in sales in the low-end segment, particularly as migrant workers opt for more affordable, budget smartphones when returning home for holidays.
The researchers also hinted at the potential for an iPhone recovery, citing slow but steady improvement observed from week to week, suggesting a possible shift in momentum. Lam mentioned, "For the second quarter (Q2), the possibility of new color options combined with aggressive sales initiatives could bring the brand back into positive territory; and of course, we are waiting to see what its AI features will offer come WWDC in June."
The researchers estimated low single-digit year-over-year growth for China’s smartphone market in 2024.
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