Apple’s iPhone sales in China took a hit in the first quarter of this year due to strong competition from domestic brand Huawei. According to a report from Counterpoint Research, Apple saw a 19.1% decline in iPhone sales, while Huawei experienced a remarkable 69.7% surge in smartphone sales. This resurgence can be attributed to the successful launch of Huawei’s Mate 60 smartphone, which features a high-end chip supporting 5G connectivity.
The U.S. sanctions imposed on Huawei in 2019 severely impacted its smartphone business, but the company is now making a comeback. Counterpoint’s research note revealed that Huawei is the fourth-largest smartphone maker in China, putting pressure on Apple, which holds the third position in the market.
Senior research analyst Ivan Lam stated that Apple’s sales were subdued in the quarter due to Huawei’s comeback and a decrease in replacement demand. However, Lam remains optimistic about Apple’s potential recovery in China through the introduction of new color options, aggressive discounts, and AI features expected to be unveiled at the upcoming Worldwide Developers Conference in June.
On the overall outlook of China’s smartphone industry, Counterpoint anticipates low single-digit growth for 2024, with AI features playing a significant role in driving demand for new mobile phones. Chinese device makers like Xiaomi, Oppo, and Huawei’s spinoff Honor are incorporating advanced AI technologies into their smartphones to attract consumers.
In conclusion, Huawei’s resurgence in the Chinese smartphone market has posed a challenge for Apple, but innovative strategies and advancements in AI technology could help Apple regain its foothold in China.
Opinion:
In my opinion, the competition between Apple and Huawei in the Chinese smartphone market reflects the dynamic nature of the tech industry. While Huawei faced setbacks in the past due to sanctions, its ability to bounce back and gain market share is commendable. Apple, on the other hand, needs to adapt to the changing landscape and leverage new technologies like AI to stay competitive. The upcoming WWDC could be a crucial event for Apple to showcase its innovation and win back customers in China. Overall, the rivalry between these two tech giants will likely lead to more innovation and better products for consumers in the future.