KEY TAKEAWAYS
- Sales in China, Apple’s largest overseas market, dropped 24% in the first six weeks of 2024 compared to the same period in 2023, according to market research firm Counterpoint.
- The iPhone maker’s market share in China slipped to 16% in 2024, falling to fourth place from second place in 2023, when it had a 19% share.
- Major Chinese retailers are offering the iPhone 15, launched only five months ago, at discounted prices to stimulate demand.
Apple’s (AAPL) sales of iPhones in China, its biggest overseas market, fell by 24% over the first six weeks of this year, according to market research firm Counterpoint.
The data follows Apple’s disclosure last month that its Greater China sales during the fiscal first quarter fell 13%. Apple has been rolling out discounts to pump up demand.
The top spot in the country at 18% market share went to domestic budget phone maker Vivo, while Apple’s main competitor for high-end phones in the country is another Chinese firm, Huawei, which increased to 17% market share from 9% last year. Led by its Mate 60 series, Huawei’s sales surged 64% over the period to become the second-largest seller in China, and aggressive pricing from OPPO, Vivo, and Xiaomi squeezed Apple’s mid-range offerings, according to Counterpoint.
The iPhone maker’s market share in China fell to 16% in 2024, falling to fourth place from second place in 2023, when it had a 19% share. Chinese retail giants JD.com, TMall, and Pinduoduo are offering steep discounts on Apple’s iPhone 15 just five months after launch to generate demand.
The plunging Chinese sales are another hit for Apple, which faces one of the largest-ever European Union antitrust fines. The European Commission fined Apple around $2 billion for violating antitrust rules through “abusive App store rules for music streaming providers.”
Apple shares were down more than 2% in premarket trading Tuesday.