iPhone sales in China have fallen in recent quarters, raising concerns for Apple. In Q3 2023, market researcher IDC estimated that Apple’s shipments were down 4% in China. This decline has been attributed to a number of factors, including the challenging macroeconomic environment in China, the resurgence of Huawei, and the increasing popularity of domestic Android brands.
In October 2023, Bloomberg reported that iPhone sales in China fell by 6% in the launch month of the iPhone 15, compared to the same period for the iPhone 14. This was the first year-on-year decline in iPhone sales in China since 2016.
The decline in iPhone sales in China is a significant concern for Apple, as China is its largest overseas market. In fiscal year 2023, China accounted for 25% of Apple’s total revenue.
Factors behind the decline
There are a number of factors that have contributed to the decline in iPhone sales in China:
- Challenging macroeconomic environment: The Chinese economy has been slowing down in recent years, and this has had a negative impact on consumer spending.
- Resurgence of Huawei: Huawei has made a strong comeback in the Chinese smartphone market since the US government lifted its sanctions on the company.
- Increasing popularity of domestic Android brands: Domestic Android brands such as Xiaomi, Oppo, and Vivo have been gaining market share in China in recent years. These brands offer high-quality smartphones at lower prices than Apple.
The decline in iPhone sales in China is a significant development that could have a major impact on Apple’s bottom line. It will be interesting to see how Apple responds to this challenge in the coming months and years.