Apple experienced its most challenging quarter for iPhone sales in China since 2020, recording a notable 19% decline in the first quarter

Image: Apple

China's smartphone landscape witnessed a notable shift in the first quarter of 2024, with iPhone sales taking a hit amidst a resurgence from local competitors, according to latest research by Counterpoint.

Contrary to the previous quarter, where the Chinese smartphone market saw modest growth of 1.5%, the latest numbers reflect a challenging period for Apple. The tech giant experienced a significant 19.1% decline in iPhone sales, attributed to consumers gravitating towards alternative premium smartphone brands.

Huawei emerged as a formidable player in the market, boasting a staggering 69.7% growth compared to the same period last year. The success of Huawei's Mate 60 series played a pivotal role in solidifying the company's stronghold in the premium segment, traditionally defined by devices priced over $600.

Apple's setback in China is directly linked to Huawei's resurgence, particularly in the premium segment where the two tech giants directly compete. As Huawei continues to assert its dominance, Apple faces intensified competition and dwindling market share.

Analysts remain optimistic about Apple's prospects, however, foreseeing potential rejuvenation in the Chinese market with the release of upcoming iPhone models featuring new color options and advanced AI features. Despite the current challenges, Apple's innovation and brand loyalty are expected to play a crucial role in regaining momentum in China.

Looking ahead, the Chinese smartphone market is poised for low single-digit growth throughout 2024, presenting both opportunities and challenges for global tech players vying for dominance in this dynamic landscape.