Apple’s iPhone Sales Plummet in China, Huawei Takes the Lead
A Shift in the Smartphone Landscape
Apple Inc.’s iPhone sales took a significant hit in China during the December quarter, with a staggering 18.2% decline, according to independent research. This setback marks a major blow to the company in its largest market outside of the US.
Huawei’s Rise to the Top
Meanwhile, Huawei Technologies Co. has reclaimed the top spot in China’s smartphone market, with a 15.5% year-over-year increase in sales. The company’s mid-end Nova 13 series and high-end Mate 70 series have been driving this growth. Notably, the Mate 70 handsets are the first to offer users the option to use software completely free of US technology, thanks to Huawei’s HarmonyOS Next operating system.
Apple’s Struggle to Adapt
The decline in iPhone sales in China is attributed to Apple’s struggle to adapt to the local market. The company’s latest generation of iPhones, which debuted with artificial intelligence upgrades, has failed to gain traction in China. The reason? Most of these new features are still not accessible in China, as Apple searches for a local partner to provide on-device and cloud AI infrastructure.
A Global Slump
The decline in China has contributed to a global slump of 5% in iPhone sales during the key shopping period. This uneven debut for the latest generation of iPhones raises concerns about the company’s ability to compete in the world’s largest smartphone market.
China’s Broader Smartphone Market Sees Decline
The country’s broader smartphone market also saw its first decline in sales in the final quarter of 2024, after returning to growth for most of the year. This decline marks a significant shift in the smartphone landscape, with Huawei poised to reclaim share of the premium segment in China.
The Future of Smartphones in China
As Apple struggles to regain its footing in China, Huawei is pushing forward with its made-in-China chips and HarmonyOS Next operating system. The company’s efforts to reclaim share of the premium segment in China are likely to continue, leaving Apple to re-evaluate its strategy in this critical market.
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