Apple Inc. is experiencing a tough start to 2024 in the Chinese market, with iPhone sales plummeting by 19.1% compared to the same quarter last year. This drop is highlighted in a new report from Counterpoint Research, which attributes the decline to a combination of overall smartphone market stagnation and aggressive competition from local brands such as Huawei.
Despite signs of stabilization in the Chinese smartphone market, Apple has struggled to maintain its sales momentum. Huawei, in particular, has shown a remarkable growth of 69.9% year-over-year, directly targeting the premium segment where Apple traditionally dominates.
The subdued demand for iPhone upgrades is another factor contributing to Apple's sales slump. During the company's February earnings call, it was revealed that sales in China had fallen 13% year-over-year, totaling $20.82 billion.
However, there's a glimmer of hope for Apple as Counterpoint notes a "slow but steady improvement" in weekly iPhone sales. The tech giant is also banking on its upcoming AI announcements at the Worldwide Developers Conference (WWDC) to boost interest in its next generation of devices, including the highly anticipated iPhone 16.
As Apple gears up for its next big launch, the company faces the critical task of regaining its footing in one of its most crucial markets.
