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Foreign Phone Sales in China Drop Nearly 10% in May Amid Rising Local Competition

Sales of foreign-branded smartphones in China, including those from Apple Inc., fell 9.7% year-on-year in May, according to data released on Friday by the China Academy of Information and Communications Technology (CAICT).

Total shipments of non-Chinese brands dropped to 4.54 million units in May, compared to the same month in 2023. Although CAICT did not provide a breakdown by company, Apple’s dominant share among foreign players means its performance heavily influenced the overall decline.

The data highlights the intensifying competition foreign manufacturers face from domestic brands like Huawei, Xiaomi, and Honor. Apple has been particularly impacted, prompting the tech giant to implement aggressive pricing strategies, including discounts of up to 2,530 yuan ($351) on iPhone 16 models through Chinese e-commerce platforms.

Meanwhile, the broader Chinese phone market also saw a significant contraction. Total smartphone shipments in the country fell 21.8% year-on-year, with 23.72 million units sold in May.

Analysts say the data reflect both weak consumer demand and a growing shift toward homegrown technology, amid rising geopolitical and market pressures.

Apple Receives Local Content Certificates in Indonesia, Still Needs Additional Permits to Sell iPhone 16

On Friday, Indonesia issued local content certificates for 20 Apple products, including the highly anticipated iPhone 16. However, the company still requires additional permits from other government ministries before it can begin selling these devices in the country.

The issuance of these certificates follows Apple’s recent announcement of more than $300 million in investments in Indonesia, including funding for plants producing components for its products and establishing a research and development center. This move comes after Indonesia imposed a ban on iPhone 16 sales last year due to Apple’s failure to meet local content requirements.

Apple was granted certificates for 11 phone models and 9 tablets, having successfully met the necessary criteria, according to industry ministry spokesperson Febri Hendri Antoni Arief. However, Apple still needs permits from the communications and digital ministry as well as the trade ministry to begin selling its products in Indonesia.

Despite making progress, Apple has yet to receive a response from the relevant Indonesian ministries regarding its requests. Negotiations between the tech giant and Indonesia’s government had been described as “tricky” by the country’s industry minister.

According to research firm Canalyst, Apple was not among the top five smartphone brands in Indonesia in the third quarter of the previous year, highlighting the challenge the company faces in regaining market share.