According to the report, Apple’s sales declines have also contributed to a double-digit fall in total smartphone shipments in China during the first week of the new year. Huawei and other Android brands maintained relatively stable growth rates.
The research firm said Apple was unable to boost sales in the country despite heavily discounting many iPhone models through major online marketplaces. For example, iPhone 15 Pro and iPhone 15 Pro Max prices dropped by 16% on the Pinduoduo ecommerce platform in the first week of 2024.
The 30% drop represents a significant decline for Apple compared to a 3% decline overall in 2023. China is Apple’s third largest market. According to Jefferies, the 3% drop in 2023 is equivalent to the US company’s market share decline of 0.4%.
Analysts believe Apple’s decline is largely due to competitive pressure from local rivals, especially Huawei with its Mate 60 Pro smartphone in August last year.
Data for the final quarter of 2023 showed that Huawei’s market share in its “home court” increased by 6%.
In 2024, Apple may face even more competitive pressure. Jefferies predicts the iPhone giant’s shipments will continue to fall by double digits, with Huawei taking the lost market share.
Specifically, they estimate Huawei will ship around 64 million smartphones worldwide in 2024 – a significant increase from the sub-35 million units estimated to be shipped in 2023.
