This forecast, based on analysis by Jefferies, anticipates a significant downturn in the Chinese market, with double-digit sales reductions projected for the upcoming year. Despite some analysts deeming Apple “resilient” in this region, recent trends suggest a different reality.
Jefferies’ research, highlighted by Bloomberg, indicates that while the mobile industry in China saw growth in December, Apple experienced a sluggish start with its iPhone 15 generation.
This lag led to a 30% year-on-year decline in iPhone sales. Contributing factors include the introduction of Huawei’s Mate 60 Pro and a new domestically produced chip, which have enabled Huawei to regain a portion of its former customer base from Apple.
The steep decline in Apple’s sales volumes was especially noticeable in December, prompting Jefferies to predict a similar trend for 2024.
The analysis also pointed out the increase in discounts on Apple smartphones across various online platforms. These discounts, though significant, failed to boost sales volumes and are believed to have negatively impacted the average selling price of Apple’s devices.
This gloomy outlook for Apple in China is not an isolated view.
Other analysts, including Piper Sandler and Ming-Chi Kuo, have previously adjusted their forecasts, citing weaker-than-expected iPhone demand in the country.
In particular, during the November 11 Singles Day sales event, Apple’s iPhone sales dipped by 4% year-on-year, whereas Huawei witnessed a striking 66% surge in its smartphone sales.
This declining trend poses a significant challenge for Apple, as it navigates a competitive and rapidly changing market landscape in China.
