Despite its efforts to regain market share in China, with Tim Cook, CEO of Apple, attending an Apple store opening recently, the company’s iPhone shipments declined by 6.6% in the first quarter of 2024, according to the latest date from market intelligence firm International Data Corp.
This is against the backdrop of China’s smartphone shipments growing by 6.5% year over year (YoY) to 69.3 million units in Q124.
“Although the growth was supported by a low comparison base year, it marks the second consecutive quarter of growth adding momentum to the market recovery,” IDC said in its media advisory.
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Chinese brands Huawei and Honor drove the “better-than-expected shipments” strong growth, which also saw a 9.3% YoY growth in the overall Android market.
Low- to mid-range price devices
“Huawei made a strong comeback and achieved a tie with Honor, though supply constraints will still be a pain point,” said Arthur Guo, senior research analyst in Client System Research for IDC China. “Apple’s price promotions in the quarter were unable to mitigate the impact of the intense competition from Android players.”
Apple’s decline can be attributed to demand for low- to mid-range devices and the increasing popularity of foldable phones, which the American company has not taken a plunge into. Add to that is the phenomenal growth in interest in (artificial intelligence) AI-enabled devices.
“The close race among the top-tier players implies that Chinese consumers are more likely to change from one brand to another,” said Will Wong, senior research manager for Client Devices at IDC Asia/Pacific. “Thus, there’s an increased need for action from the vendors to keep innovating to ensure strong customer stickiness.”