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China does what it has always done. They are giving market share away to their own firms competing with Apple. Every company which has ever allowed the Chinese to produce their products are well aware of the scam.

Apple Inc. experienced a notable decline in its market share in China during the June quarter, with iPhone shipments falling by 3.1%. This decrease marks the first time in four years that Apple has been excluded from the top five smartphone manufacturers in the country. The decline is largely attributed to the rise of local competitors such as Huawei, which saw a significant resurgence, and other brands like Vivo and Xiaomi, which collectively grew by 11% year-on-year.

The Chinese market has proven challenging for Apple, despite a brief period of growth earlier in the year. Government data had shown a 40% surge in iPhone shipments in April and May, leading to hopes of recovery. However, by June, shipments had declined, partly due to concerns about profitability among local retail partners, who slowed orders to maintain margins.

Market research firms have provided varying figures, with IDC reporting a 3.9% decline in shipments, while Counterpoint Research cited a 5.7% drop. These discrepancies highlight the challenges in accurately tracking smartphone sales in China’s complex market.

Apple’s performance in China contrasts with its global strategy, where the company aims to ship at least 90 million units of its upcoming iPhone 16 models. The tech giant is banking on new AI features to drive demand, following a rocky year marked by economic uncertainty and intensified competition.

The competition from local brands has been fierce, particularly from Huawei, whose shipments surged by 50%. This competition has been exacerbated by the broader economic downturn in China, which has impacted consumer spending and, consequently, smartphone sales.

Despite these challenges, Apple continues to maintain a significant presence in the Chinese market. As of the latest data, the company’s market share stands at 13.6%, a substantial increase from 8.3% in the third quarter of 2020. This growth reflects Apple’s resilience and the strong brand loyalty it enjoys among Chinese consumers.

Looking forward, Apple is set to release its earnings report on August 1, which will provide more detailed insights into its performance and strategy. The company remains optimistic, focusing on innovation and new product launches to regain momentum in a highly competitive market.

Key Points:

  • Apple Inc.’s iPhone shipments in China fell by 3.1% in the June quarter.
  • This decline pushed Apple out of the top five smartphone makers in China.
  • Local competitors like Huawei and Xiaomi saw significant growth, with Huawei’s shipments up by 50%.
  • The decline follows a brief period of growth earlier in the year.
  • Apple aims to ship at least 90 million units of its new iPhone models later this year, leveraging new AI features.

Al Santana – Reprinted with permission of Whatfinger News