Apple's Q1 smartphone shipments in China tumble 19%, Huawei jumps 70%

Beijingwalker

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Apple's Q1 smartphone shipments in China tumble 19%, Huawei jumps 70%​

By Liam Mo and Brenda Goh
April 23, 20246:47 PM GMT+8

People look at the new iPhone 15 Pro as Apple's new iPhone 15 officially goes on sale across China at an Apple store in Shanghai

People look at the new iPhone 15 Pro as Apple's new iPhone 15 officially goes on sale across China at an Apple store in Shanghai, China September 22, 2023. REUTERS/Aly Song/File Photo Purchase Licensing Rights, opens new tab

BEIJING, April 23 (Reuters) - Apple's smartphone shipments in China tumbled 19% in the first quarter of the year, the worst performance since 2020, as the iPhone maker took a hit from Huawei's (HWT.UL) new product launches in the premium segment, market data showed.

Apple's share in the world's biggest smartphone market fell to 15.7% in the first quarter from 19.7% a year earlier. That put it almost level with Huawei, which saw sales jump 70%, according to research firm Counterpoint.

Apple (AAPL.O), opens new tab lost its crown as the biggest smartphone seller in China to rival Vivo, sliding to third place in the quarter, followed by Huawei whose market share jumped to 15.5% from 9.3% a year earlier. Honor, a mass market brand spun out of Huawei, was in second place.

"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-biggest market and generated around 17% of its total revenue in the October-December quarter.

Its market share loss in China comes after separate data showed earlier this month that the U.S. firm suffered nearly a 10% drop in global smartphone shipments in the first quarter of 2024, hurt by intensifying competition by Android smartphone makers led by Samsung Electronics (005930.KS), opens new tab.

Samsung clinched the top phonemaker spot from Apple in the first quarter.

Shares of Apple slipped 0.4% in premarket trade on Tuesday. The stock has fallen about 14% so far this year and posted its worst weekly performance in over eight months on Friday.

Throughout the first quarter, Apple launched campaigns in China to entice consumers with discounts, including subsidizing certain iPhone models by as much as 1,300 yuan ($180).

Huawei last week released its Pura 70 series of high-end phones after launching the Mate 60 series in August. The Mate 60 was seen as a comeback for the Chinese firm in the high-end market and described as a triumph over U.S. sanctions on the company, as the handsets contain an advanced China-made chip.

U.S. Commerce Secretary Gina Raimondo said on Sunday that the chip powering Huawei's flagship phone is not as advanced as American chips, arguing it showed U.S. curbs on shipments to the telecoms equipment giant are working.

Canadian research firm TechInsights expects overall shipments in China this year to top 50 million units, including 10 million for the Pura 70 series. That would make Huawei the No. 1 seller with a 19% market share, up from 12% in 2023.

In the first quarter, China's smartphone market grew 1.5%, marking the second consecutive quarter of positive growth, according to Counterpoint.
 

Yommie

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@Hamartia Antidote

A lot of this has to do with American politics. If the US send weapons to Taiwan, then don't blame Chinese for boycotting Apple.
 

Beijingwalker

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Huawei sales are soaring in China as Apple sinks

By Diksha Madhok, CNN

Published 6:51 AM EDT, Tue April 23, 2024

2024-04-18t045511z-1077495491-rc2r87aousad-rtrmadp-3-huawei-china.JPG

Customers look at new Huawei Pura 70 series smartphones as they go on sale at Huawei's flagship store in Beijing on April 18, 2024.
Tingshu Wang/Reuters

New DelhiCNN —
Huawei is not only making a roaring comeback in China, it is also on the verge of overtaking Apple in the world’s largest smartphone market.

The Shenzhen-based conglomerate, which has been a flashpoint in the escalating rivalry between Washington and Beijing, saw 70% year-on-year growth in its smartphone sales in China in the first quarter, while Apple’s sales declined by more than 19%, according to Counterpoint Research.

“Apple’s sales were subdued during the quarter as Huawei’s comeback has directly impacted Apple in the premium segment,” said Ivan Lam, senior research analyst at Counterpoint.

The iPhone maker, which led China’s smartphone market with a share of nearly 20% in the first quarter of 2023, has fallen to the third spot in the first three months of this year, according to Counterpoint. Its market share now stands at 15.7%, while Huawei’s has jumped to 15.5%, from 9.3% last year.

Huawei’s popular Mate 60 Pro smartphone made headlines last year when the US government sought more information about the model, which included a sophisticated processor.

Its debut shocked industry experts who questioned how the company could acquire such a chip following sweeping efforts by the United States to restrict China’s access to foreign chip technology because of national security concerns.

Counterpoint’s data comes just days after another market research firm IDC said Apple’s global smartphone sales had tumbled 10% in the first quarter, mainly because of loss of momentum in China.

China is the largest market behind the United States for Apple, but the company is facing a challenging time in the world’s second-largest economy. Chinese consumers, who once would have considered Apple, are now turning to Chinese brands.

Overall smartphone sales in China grew 1.5% in the first quarter, according to Counterpoint. Local smartphone makers Vivo and Honor were the top two brands by market share.

 

Han Patriot

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The cheerleaders predicted Huawei to go bankrupt and China to implode.
 

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