China Market Share of iPhone Slips: Insights from the Latest Report

Apple’s highly popular iPhone has been dethroned from its position as the leading smartphone in China. This prediction comes from a note by Jefferies analyst. Recently, Huawei has managed to dethrone the iPhone from its long-held position as the leader in market share. The lackluster release of the highly anticipated iPhone 15 has paved the way for Huawei to claim the coveted number-one spot in the smartphone industry.

Apple anticipated that the priciest iPhone 15 would be a best-seller. However, analysts at Jefferies predict a double-digit drop in sales this year. Since the release of the most recent generation, the iPhone has shown negative volume growth. Prior to the iPhone 15’s formal unveiling date, Apple reportedly reduced production of the device by 8 million units.

While smartphone sales in the region were slowing down, Huawei phone sales in China had strong double-digit growth in 2023, surpassing Apple’s sales.

“The trend suggests iPhone would lose to Huawei in 2024. We believe weak demand in China would eventually lead to lower-than-expected global shipments of iPhone”, wrote Jefferies analysts.

The Mate 60 Pro, Huawei’s newest high-end smartphone featuring a CPU produced in China, was unveiled. Even though Huawei’s 7-nanometer processor is not as sophisticated as Apple’s 3-nanometer. Its technological advancements nonetheless mark a major turning point in the US-China chip race.

According to Counterpoint Research, sales of iPhones in China have decreased. The company attributes this to the difficulty of China’s economy in recovering from the COVID-19 downturn. However, experts from Counterpoint think Huawei might sell between 5 and 6 million units of the Mate 60 Pro alone this year. They predict that number could climb to more than 10 million devices in 2024.

The relations between the United States and China are the backbone of the smartphone war. Only one month ago, Chinese officials put an end to the practice of allowing government workers to use iPhones on the job. This decision was taken only one week before Apple launched the iPhone 15.

Apple’s market capitalization in Asia may take a hit if China follows through on its pledge to reduce its reliance on technologies developed in other countries. The prohibition on iPhones is reflective of similar restrictions implemented in the United States. An example of such is the designation of Huawei as a threat to national security by the Federal Communications Commission.

Check Out: Biden Issues Order Restricting US Investment in Chinese Tech.