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Amidst a competitive landscape dominated by local players, Apple Inc. is facing a decline in its iPhone sales in China. According to Jefferies analysts led by Edison Lee, the company is projected to experience further decreases in sales volumes throughout the year. This downturn comes in contrast to the robust performance of its competitors such as Xiaomi and Huawei.
The latest findings from Jefferies analysts have indicated a substantial drop in Apple’s iPhone sales in China, with a staggering 30% year-over-year decline during the first week of January. In contrast, rivals Xiaomi and Huawei have managed to maintain their sales momentum, with both companies demonstrating stable sales figures.
The competition intensifies as the Chinese market continues to expand, presenting challenges to Apple’s penetration and market share in the region. The sluggish start experienced by Apple’s latest generation of iPhones in China has further contributed to the decline. Industry checks conducted by Jefferies analysts showcased a consistent downtrend in iPhone sales, attributing it to the lackluster performance in comparison to local competitors.
While Apple faces a challenging landscape in China, the rest of the country’s mobile market witnessed growth in December. Notably, Huawei Technologies Co. emerged as one of the fastest-growing contenders, bolstered by the success of its new Mate 60 device lineup. The company’s expansion in the Chinese market has continued to gain traction, diversifying the options available to consumers and further intensifying the competition for Apple.
The findings presented by Jefferies analysts are indicative of the evolving dynamics within China’s mobile market. With local players like Huawei and Xiaomi maintaining their stronghold and driving growth, Apple confronts formidable challenges in revitalizing its sales performance in the region. As the year progresses, it becomes increasingly important for Apple to reassess its strategies and offerings to compete effectively in China’s fiercely competitive smartphone landscape.
