Foreign-branded smartphone shipments to China, including Apple’s iPhone, plunged 47.4% in November compared to the same period last year, according to data from the China Academy of Information and Communications Technology (CAICT). This marks the fourth consecutive month of decline, with shipments falling to 3.04 million units from 5.769 million units in November 2023.
The downward trend, which also saw a 44.25% year-on-year drop in October, reflects challenges faced by foreign brands in the world’s largest smartphone market. Apple, the leading foreign smartphone maker in China, has struggled amid a slowing economy and stiff competition from domestic brands like Huawei.
Economic Challenges and Consumer Behavior
China’s economic slowdown and deflationary pressures have dampened consumer spending. In November, Chinese consumer prices hit their lowest level in five months, compounding uncertainty in the market. This economic backdrop has contributed to declining market share for foreign brands, including Apple.
In an effort to counter the trend, Apple launched a rare four-day promotion in China, offering discounts of up to 500 yuan ($68.50) on its flagship models. The move aims to spur sales as Apple faces increasing pressure from competitors.
Huawei’s Resurgence
Since re-entering the premium smartphone market in August 2023 with locally developed chipsets, Huawei has gained significant ground. In the third quarter of 2024, Huawei’s smartphone sales in China surged by 42% year-on-year, while Apple’s sales slipped by 0.3%, according to research firm IDC.
Apple briefly dropped out of China’s top five smartphone vendors during the second quarter of 2024 but regained its position in the third quarter. However, the company continues to lose ground to Huawei, which has emerged as a formidable competitor in the premium segment.
Broader Smartphone Market Trends
Shipments of all phones within China, including domestic brands, declined by 5.1% year-on-year in November, totaling 29.61 million handsets. The decline underscores broader challenges in the Chinese smartphone market, where domestic brands are better positioned to weather economic headwinds than their foreign counterparts.
Apple’s ability to maintain its market presence in China is crucial, as the country remains a key market for the company. However, the ongoing economic challenges and Huawei’s resurgence present significant hurdles that Apple must navigate to sustain growth in the region.