Apple’s iPhone sales in China fell 19% last quarter

Apple’s iPhone sales in China fell 19% in the first three months of this year, its worst performance since the start of the pandemic in 2020, and the tech giant lost its position as the best-selling phone in the key market.

The Cupertino, California-based company’s share of the world’s largest smartphone market fell to 15.7% in the first quarter from 19.7% a year earlier.

That’s roughly on par with Huawei, which saw a 70% increase in sales, according to research firm Counterpoint.

Apple lost its title as China’s biggest smartphone seller to rival Vivo, dropping to third place in the quarter, followed by Huawei, which increased its market share to 15.5% from 9.3% a year earlier.

Honor, a mass market brand spun out from Huawei, came in second place.

“Huawei’s resurgence has had a direct impact on Apple in the premium segment. Moreover, Apple’s replacement demand has been slightly subdued compared to previous years,” Counterpoint analyst Ivan Lam said in a press release. It is stated in

Apple’s slowdown in China is partly due to a government crackdown on foreign technology used by public state institutions and companies.

Apple’s iPhone sales in China fell nearly 20% in the latest quarter, according to a report. Reuters

Apple, whose stock price was flat last year, is preparing to release its earnings on May 2nd.

On Tuesday, the company announced that it would be holding an event on May 7, following reports that it would be releasing improved versions of the long-awaited iPad Pro and iPad Air next month.

Apple stock is up slightly as of 11:41 a.m. ET Tuesday.

The stock price was approximately $166.54 per share.

China is Apple’s third-largest market after the United States and Europe, generating about 17% of its total revenue in the October-December period.

iPhone shipments fell nearly 10% globally in the first three months of this year, according to another data firm, allowing Samsung’s Android phones to overtake Apple in global sales. .

To boost sales in China, Apple began lowering prices earlier this year, offering up to $180 off regular retail prices.

Apple currently ranks third in China’s domestic smartphone market, with consumers gravitating toward domestic brands. AFP (via Getty Images)

Huawei, which is facing severe sanctions from the United States, is using domestically produced chips in its new smartphone, the Mate 60 Pro, and is praised in China as a symbol of national ingenuity.

Commerce Secretary Gina Raimondo told CBS’s “60 Minutes” last Sunday that the chips are not as advanced as those made in the United States.

The Biden administration has banned U.S. companies from investing in Chinese companies that develop sensitive technologies such as semiconductors and microelectronics.

The order was intended to prevent U.S. capital and expertise from supporting China’s military modernization and technological development that could undermine U.S. national security.

The measure targets private equity, venture capital, joint ventures and greenfield investments.

Apple has lowered the price of iPhones in China in an effort to boost sales. Reuters

Last week, Apple complied with the Chinese government’s request to remove popular apps such as WhatsApp, Threads, Telgram, and Signal.

US lawmakers recently voted in favor of a proposal that could lead to a ban on TikTok, the hugely popular social media app owned by Beijing-based Chinese tech conglomerate ByteDance.

Apple CEO Tim Cook has sought to diversify his company’s supply chain and become less dependent on China. AFP (via Getty Images)

Apple has sought to reduce its dependence on China in recent years by diversifying its supply chain and building manufacturing hubs in countries such as Vietnam and India.

Apple CEO Tim Cook said last week that the company is considering establishing a presence in Indonesia.

with post wire