After months of hardship in China, Apple’s discount strategy seems to be paying off. According to data from the China Academy of Information and Communications Technology (CAICT), a subordinate of the Chinese government, Apple’s iPhone sales in China in April increased by 52% compared to the same period last year. Surveys indicate that Apple has once again become the favorite smartphone brand among Chinese consumers.
CAICT’s data on Tuesday shows that the shipment volume of foreign brand phones in China in April increased from 2.3 million units to 3.5 million units, with iPhones accounting for the majority of these devices.
After a sharp decline in the first two months of this year, iPhone sales have shown a rebound since March.
Apple’s stock price rose by 2.3% in pre-market trading on Tuesday, May 28.
In March, Apple saw a 12% increase in shipments in China, a significant improvement compared to the sales figures from the first two months of 2024 when the company experienced a 37% decline in sales. Apple’s sales volume in the first quarter decreased by 19.1% year-on-year, marking the company’s worst quarter since 2020.
Since the beginning of 2024, Apple and its Chinese distributors have been reducing prices, with some promotions set to continue during the June 18 shopping festival.
Earlier this month, Apple launched a major discount campaign on its official Tmall website in China, where certain iPhone models could enjoy discounts of up to 2,300 yuan (318 dollars). Similarly, another major e-commerce retailer, JD.com’s Apple store, also provided similar discounts.
For iPhone manufacturers, April is usually a lower sales month, so even small changes in purchases can lead to significant fluctuations in year-on-year growth rates. A recent consumer survey conducted by Bloomberg Intelligence earlier this month showed that iPhones have regained their position as the most favored mobile device in China, with increased interest in upgrading to new devices.
Apple’s sales in China have been fiercely competing with Huawei. With support from the Chinese government, Huawei surpassed Apple in shipment volume in the first quarter of this year.
Bloomberg analysts Steven Tseng and Sean Chen wrote, “Apple’s shrinking market share in China may soon stabilize, as our latest survey shows that Apple has regained its position as the favorite smartphone brand among Chinese consumers after being replaced by Huawei.”
(Reference: Reports from Bloomberg and Reuters)