Apple’s iPhone China shipments in February look even worse than estimated

Apple’s iPhone China shipments in February look even worse than estimated

  • Apple’s iPhone shipments in China have fallen once more, authorities information present.
  • Apple shipped roughly 2.4 million smartphones in February — a 33% drop from 2023, per Bloomberg.
  • It is the most recent signal of the corporate’s struggles in China as rivals like Huawei take market share.

The most recent iPhone information out of China suggest Apple’s nonetheless having a troublesome time in one in all its largest markets.

The tech large shipped round 2.4 million smartphones in February within the nation, based on Bloomberg. That is a 33% drop from the identical month in 2023, Bloomberg stated, citing information from the China Academy of Data and Communications Know-how, a authorities physique.

And whereas it isn’t as dangerous as January — when Apple shipped an estimated 5.5 million items there, or roughly 39% fewer telephones yr on yr, based on Bloomberg — it nonetheless appears worse than a significant report instructed not too long ago.

Counterpoint Analysis, in its report launched in early March, estimated that iPhone gross sales in China had dropped by 24% within the first six weeks of the yr. That decline, at a slower tempo than China’s more moderen information present, sparked concern on the time amongst buyers about Apple’s stability within the nation, weighing on shares. The inventory slipped a bit on Tuesday; it is fallen greater than 11% in 2024.

“This has been a really tough interval for Apple in China,” Dan Ives, a know-how analyst at Wedbush Securities, wrote in a latest notice.

One among Apple’s points is stiff competitors from Huawei, an area telecom large, which has dethroned the iPhone because the No. 1 smartphone within the nation, based on Counterpoint. The Chinese language authorities has additionally banned iPhones from some authorities businesses and firms amid US-China tech and commerce tensions, and an financial slowdown might be pushing customers to spend much less.

Nicole Peng, an analyst at Canalys, advised Bloomberg that an extra stock of iPhones shipped to China within the final quarter of 2024 may be accountable.

However in the present day’s information is “an indication of a slowing development for the upcoming months for Apple in China, particularly when the Chinese language friends are driving very aggressively the AI smartphone messages,” Peng stated.

Apple has already been having a troublesome time within the nation. In its newest quarterly earnings for the three months by way of December 2023, Better China gross sales dropped to $20.8 billion — a 13% year-over-year decline.

That is on prime of a broader number of challenges in 2024, together with a virtually $2 billion high-quality from the EU, a DOJ antitrust lawsuit, struggles with quickly advancing its AI know-how, and the choice to finish its self-driving automobile undertaking.

Now, Apple’s leaders look like making an attempt to rebuild bridges within the nation. CEO Tim Prepare dinner has been in China this month to go to Apple’s latest retailer in Shanghai and attend the high-profile China Improvement Discussion board in Beijing, which goals to strengthen ties between the CCP and the remainder of the world.

“The timing of this journey was vital,” Ives wrote in his notice. “In essence, Apple wants China, and China wants Apple.”

Apple did not instantly reply to a request for remark from Enterprise Insider earlier than publication.

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