Apple’s smartphone shipments in China fell 19% in the first quarter of this year, the worst performance since 2020, as the iPhone maker was stung by Huawei’s new premium product releases.
Apple’s share of the world’s largest smartphone market declined to 15.7% in the first quarter, from 19.7% a year earlier.
That brought it nearly on par with Huawei, whose sales increased by 70%, according to research firm Contrast.
Apple lost its position as China’s largest smartphone seller to rival Vivo, dropping to third place in the quarter, followed by Huawei, whose market share increased to 15.5% from 9.3% a year ago.
Honour, a mass market brand developed off of Huawei, came in second position.
“Huawei’s comeback has directly impacted Apple in the premium segment. Besides, the replacement demand for Apple has been slightly subdued compared to previous years,” said Counterpoint analyst Ivan Lam in a press release.
“For the second quarter, the possibility of new color options combined with aggressive sales initiatives could bring the brand back into positive territory,” Lam said, adding it is seeing slow but steady improvement in weekly iPhone sales.
China is Apple’s third-largest market, accounting for around 17% of its overall revenue in the October-December quarter.
Its market share loss in China comes after other data revealed earlier this month that the US company experienced an almost 10% reduction in global smartphone shipments in the first quarter of 2024, hampered by increased competition from Android smartphone manufacturers led by Samsung Electronics.
In the first quarter, Samsung surpassed Apple to become the leading smartphone manufacturer.
Apple shares fell 0.4% in premarket trading on Tuesday. The stock has plummeted almost 14% this year and had its worst weekly performance in over eight months on Friday.
Throughout the first quarter, Apple ran promotions in China to tempt customers with discounts, including subsidising some iPhone models by up to 1,300 yuan ($180).
Huawei introduced its Pura 70 series of high-end phones last week, following the launch of the Mate 60 series in August.
The Mate 60 was viewed as a comeback for the Chinese corporation in the high-end market, as well as a victory over U.S. sanctions against the company, because the devices contain an innovative China-made chip.
U.S. Commerce Secretary Gina Raimondo said on Sunday that the processor powering Huawei’s flagship phone is not as advanced as American chips, suggesting that it demonstrates that US export restrictions on the telecoms equipment giant are effective.
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