KEY TAKEAWAYS
- Apple’s sales of iPhones in China, its biggest overseas market, fell by 19% year-over-year during the March quarter.
- The iPhone maker’s market share fell to third from first in China, around the same level as rival Huawei Technologies, while the overall market expanded by 1.5%.
- Apple has been struggling in China amid a ban on foreign devices in state-backed firms as well as Huawei’s release of a phone with the latest microchip.
Apple’s (AAPL) sales of iPhones in China, its biggest overseas market, fell by 19% year-over-year during the March quarter, according to market research firm Counterpoint.
The U.S. company’s market share fell to third from first in China, around the same level as rival Huawei Technologies, while the overall market expanded by 1.5%.
Apple, which reports fiscal second-quarter results in early May, has been struggling in China amid a ban on foreign devices in state-backed firms, as well as Huawei’s release of a phone with the latest microchip despite U.S. sanctions on access to advanced chips.
Apple’s China woes and lack of AI capabilities have been a drag on its stock this year, although analysts are generally bullish on the company, noting pent-up iPhone demand, growth in revenue in its App store, and expected AI announcements in June.
Another boost for the stock could come from the Vision Pro mixed reality headset, which Apple is launching in China later this year. The headset, Apple’s first foray into a new tech venture in years, was launched in the U.S. earlier this year.
Apple’s declines in the ranks in China marks a stark contrast from last year, when it was the leading smartphone seller in the country, according to International Data Corporation (IDC), another research firm.
Apple had a 15.7% share of China’s smartphone market during the first quarter this year, according to Counterpoint, down from 19.7% in the same quarter of 2023.
Apple shares, which are down about 14% this year, were little changed shortly before the opening bell Tuesday.