Apple has witnessed a remarkable surge in iPhone shipments in mainland China, with an impressive 52% increase in April compared to the previous year. This rebound extends the growth seen in March, marking a significant recovery from a slump earlier in the year. The latest data from the China Academy of Information and Communications Technology (CAICT) reveals that shipments of foreign-branded phones in China rose to 3.495 million units in April, up from 2.301 million units a year ago. Bloomberg’s analysis indicates that the majority of these shipments were iPhones, solidifying Apple’s dominance among foreign smartphone brands in China.
TOUGH START IN 2024
The boost in shipments follows a challenging start to 2024 for Apple, with a 37% decline in sales during the first two months. However, a series of strategic discount campaigns and promotions offered by Apple and its retail partners have spurred consumer interest. These discounts, set to continue until the June 18 shopping festival, have offered up to 2,300 yuan (approximately us$ 318) off select iPhone models, significantly higher than previous discounts.
Apple’s aggressive pricing strategy comes in response to intensifying competition from local rivals, particularly Huawei. Huawei has recently introduced new high-end smartphones, including the Pura 70 and the Mate 60 series, and has overtaken Apple as the No. 2 smartphone vendor in China in the first quarter. Additionally, Huawei’s retail expansion, with more flagship stores and retail distributors, has further pressured Apple’s market share.
RENEWED OPTIMISM
Despite these challenges, recent surveys suggest that Chinese consumers are increasingly willing to upgrade their phones, which bodes well for Apple’s future sales. Bloomberg analysts believe that Apple’s market share in China, which has been eroding due to competition, may soon stabilize. This optimism is supported by a broader recovery in the Chinese smartphone market, with overall sales rising by 25.5% to 22.7 million units in April.
Apple CEO Tim Cook has forecasted growth in iPhone sales in key markets, including China, even after the company reported an 8.1% drop in second-quarter revenue from the Greater China region. As Apple continues its discounting strategy and consumers show a growing willingness to upgrade, the company is poised to regain its footing in the competitive Chinese market.
