In the third quarter, iPhone sales in China declined by 0.3% amidst intensified competition in the mainland smartphone market and the Chinese Communist Party’s crackdown on Apple phones. According to data from research firm IDC on Friday, Apple held the second position in the Chinese market with a market share of 15.6%, but saw a 0.5 percentage point drop compared to the same period last year.
Leading the market in China was Vivo with a market share of 18.6%, primarily selling low-cost phones, while Huawei came in third. The performance in the third quarter was partly boosted by the launch of the new iPhone 16 on September 20th. However, on the same day, Huawei introduced a competitive product – a foldable phone.
Another set of data from research firm Counterpoint showed that the new iPhone had a strong start in China, with sales in the first three weeks of the launch increasing by 20% compared to the 2023 model.
IDC stated, “With the annual release of new products, Apple reclaimed a spot in the top five markets in China with a 15.6% market share.” The IDC press release added, “With increased market promotion efforts and the launch of Apple Vision Pro, it is expected that demand for the iPhone 16 series will gradually materialize in the future.”
According to a report from CNBC website on October 23rd, TF International Securities analyst Ming-Chi Kuo mentioned that Apple has reduced orders for the iPhone 16 by about 10 million units, leading Apple’s stock to fall by approximately 2% on Wednesday. Kuo noted that most of the order cuts were for the standard iPhone 16 model, not the iPhone 16 Pro variant, which has a more attractive display and better camera, making it more popular among consumers.
Apple is also facing additional challenges in China, including restrictions imposed by Chinese government institutions on the use of iPhones. Subsequently, Apple has resorted to multiple discount campaigns to boost sales. The Chinese Communist government has been promoting the purchase of Huawei phones by state-owned enterprises and government institutions.