Apple’s China sales tumble highlights waning clout as local brands gain

Globe and Mail via Reuters ^ | 03/05/2024 | YELIN MO AND BRENDA GOH

[SeekAndFind]

Apple’s weak China sales performance may have shocked investors, but customers and analysts have been noting the rising challenges the company faces in its third-largest market.

Intensifying competition from domestic rivals, coupled with longer upgrade cycles as consumers spend more cautiously amid an economic slowdown, have stunted Apple’s China growth, with sales there nosediving by 13 per cent in the quarter ending in December to $20.8-billion and missing estimates of $23.5-billion.

Shares of the company dipped about 3 per cent in early trading on Friday, following the disappointing China sales.

“Apple’s sales decline in China is not surprising given the strong competition it faced from local brands like Huawei and Xiaomi,” said Toby Zhu, an analyst with research group Canalys.

Apple did not immediately respond to a request for comment.

As the world’s largest smartphone market, China is crucial to Apple’s sales growth. For years, Apple has been the premium phone brand of choice in the country but the tide is now turning.

The pressure on Apple intensified in the second half of the year after Huawei’s comeback in the high-end smartphone market with its Mate 60 series phones powered by a domestically-made chip.

Other leading Android brands like Xiaomi also edged into the high-end turf that Apple has traditionally dominated. Xiaomi launched its premium Mi 14 model in October, touting its long battery life and camera capabilities. It sold 1 million units within a week of launch.

Canalys’ Zhu said Chinese manufacturers are gradually breaking into Apple’s core price segment by introducing higher-priced foldable products.

Chinese consumers have also complained about a lack of innovation in Apple’s iPhones, particularly in the design aesthetic, compared to earlier iterations.

“Another hurdle Apple needs to overcome is how it could bring more wow factors to the buyers and sustain its image

[hanamizu]

“...how it could bring more wow factors to the buyers...”

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How many ‘wow’ factors are left for phones? Admittedly, I’m a geezer, but really, what’s left?

[blitz128]

Did they not see that coming, when has China not taken something and converted to their own use, unless apple blows the factories. The deal is done, way to go apple thiught you were getting the golden goose, but that ain’t gold no matter how much you polish it

[Ronaldus Magnus III]

“”when has China not taken something and converted to their own use””

I remember a John Batchelor podcast with Gordon Chang. They describe how the Chicoms operate. A foreign company starts to build a factory in China. The Chicoms build the exact same factory right next to the foreign factory. Any company that believes a communist will honor any contract/agreement deserves what they get.

[minnesota_bound]

A phone is a phone these days.
Why spend a thousand dollars when you can get the same performance for under $200 with almost any brand.
The communists learned from Apple on how to make a phone and are now undermining them in every way. Apple is moving out of producing the iPhones in China to other countries now.

Tesla will be another car company that will be pushed out.