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30% Decline In iPhone Sales In China In The First Week Of 2024 Says Jefferies

30% Decline In iPhone Sales In China In The First Week Of 2024 Says Jefferies
According to a note from Jefferies analysts, Apple's iPhone sales in China fell by 30% in the first week of 2024. This is another indication that the American tech giant is facing increasing competitive pressure from local rivals like Huawei.
According to a note the brokerage released on Sunday, the overall double-digit reduction in China smartphone shipments for the first week was primarily caused by the decline in Apple's sales. During this time, other Android companies like Huawei saw comparatively flat year-over-year growth, according to the note.
The research report states that despite aggressively lowering several iPhone models on well-known Chinese internet marketplaces, Apple's sales decreased.
For instance, in the first week of 2024, the price of the iPhone 15 Pro and iPhone 15 Pro Max was lowered by 16% on the online store Pinduoduo.
The 30% decrease, which the brokerage extrapolated from its own market tracking, is an acceleration from the 3% year-over-year fall the U.S. corporation witnessed for the entirety of 2023 in its third-largest market, according to Jefferies. More specifically, Apple's market share fell by 0.4% in 2023 as a result of the 3% fall.
Analysts at Jefferies stated that Chinese competitors, particularly Huawei, which introduced its Mate 60 series of smartphones in August of last year, are mostly to blame for Apple's downturn.
There were no comments available from Apple and Huawei.
Many people believe that Huawei's return to the high-end smartphone market with the Mate 60 series comes after years of U.S. sanctions that had previously impeded its development.
The note states that during the last quarter of 2023, Huawei's market share for smartphones in China increased by almost 6%.
The Jefferies analysts predict that during 2024, Apple will probably experience more competition from domestic competitors. According to their estimate, Huawei is anticipated to maintain its market share growth while Apple's shipment volumes are predicted to decline by double digits in 2024.
In particular, they predict that Huawei will ship 64 million smartphones globally in 2024, a significant increase above the projected 35 million shipped in 2023.
The Chinese smartphone market is set for a recovery after years of decline, according to some analysts. Research firm IDC predicts an undetermined year-over-year gain in sales in the fourth quarter following 10 consecutive quarters of declining shipments.

Christopher J. Mitchell

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