As per the latest research note from Jefferies, Apple Inc. AAPL is predicted to face further declines in iPhone sales in China after a 30% year-on-year drop.
What Happened: Edison Lee, the research analyst, pointed out that despite the unveiling of the latest generation of iPhones, sales in China have trailed off. This downturn is projected to continue into 2024, reported Bloomberg.
Despite various discounts on Apple’s smartphone range, the company has seen a decrease in the average selling price without any significant volume growth.
See Also: Apple Appeals Against Smartwatch Sales Ban After White House Declines To Interfere
The research note also highlighted that the overall Chinese mobile market saw growth in December, with Huawei Technologies Co. leading the pack, thanks to its new Mate 60 device lineup.
Jefferies attributes part of the decrease in Apple’s market share to the nationalistic spirit ignited by the launch of Huawei’s Mate 60 Pro, which features a new system processor made in China. This device has recaptured some of Huawei’s customers who had previously switched to Apple.
After being disconnected from top chipmakers due to U.S. sanctions, Huawei has returned to the mobile market and is now building its own software ecosystem to rival Apple’s iOS.
Why It Matters: Apple’s declining sales in China can be viewed in the context of the country’s expanding ban on Apple devices. The ban, covering state-backed firms and government departments in at least eight Chinese provinces, has unfolded over the past two months.
This development has been a significant factor in Apple’s falling sales.
This downward trend was also evident during China’s Singles Day shopping festival in November last year. Apple experienced a 4% year-on-year decline in smartphone sales, in stark contrast to Chinese rivals Huawei and Xiaomi, which saw their sales grow by 66% and 28%, respectively.
Check out more of Benzinga's Consumer Tech coverage by following this link.
This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
