Apple Inc.’s AAPL latest iPhone 15 is struggling to gain traction in China as homegrown rival Huawei Technologies surges ahead.
What Happened: There is a 4.5% drop in sales of the iPhone 15 in China compared to the iPhone 14 in the first 17 days after its release, reported Bloomberg. Based on data from Counterpoint Research, the report shines a light on the increasing competition from rivals like Huawei.
Analysts at Jefferies, led by Edison Lee, anticipate even lower sales numbers for the iPhone 15 after Huawei outpaced Apple in overall sales, largely driven by the successful launch of the Mate 60 Pro. The analysts at Jefferies said that Apple has seen a sharp “double-digit” decline in iPhone 15 series sales compared to its predecessor.
The poor performance comes at a time when the smartphone market is experiencing its weakest demand in ten years, and Apple faces criticism over overheating models. A sluggish economy, the launch of Huawei’s Mate 60 Pro, and a government directive expanding the iPhone ban for government agencies and state companies are all putting pressure on Apple.
See Also: These Two Costly iPhone 15 Pro Max Upgrades Have Made It 12% Pricier To Make Than 14 Pro Max
Despite these challenges, Counterpoint’s research director, Jeff Fieldhack, pointed out that the iPhone 15 saw a double-digit percentage increase over 2022 in the first nine days of sales in the US. However, this positive trend was overshadowed by a 1.7% drop in Apple’s shares in premarket trading.
Analysts are forecasting a growing threat to Apple’s market dominance from Huawei in the high-end smartphone segment. Counterpoint predicts Huawei could sell 5 to 6 million units of the Mate 60 Pro this year, a figure that could double by 2024.
Why It Matters: Apple’s struggles in China underscore the company’s challenges in a market dominated by local brands and ongoing geopolitical tensions.
The iPhone has been a significant driver of Apple’s revenue, and a decline in its popularity in China, the world’s largest smartphone market, could have far-reaching implications for the tech giant’s global market share and profitability.
The rise of Huawei and other Chinese brands also signals a shift in consumer preference towards homegrown tech, which could further intensify the competition for Apple.
Image – Apple
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