Apple, leading smartphone sales have dropped by 19.9 per cent in the first quarter (Q1) of 2024 in the Chinese market. A new report has surfaced from Counterpoint Research that stated that Tim Cook‘s lead Apple’s sales have dropped due to Huawei’s comeback in the premium segment.
Ivan Lam, Senior Research Analyst at Counterpoint Research said, “Apple’s sales were subdued during the quarter as Huawei’s comeback has directly impacted Apple in the premium segment. Besides, the replacement demand for Apple has been slightly subdued compared to previous years.”
As per Mengmeng Zhang- the Senior Analyst, the first quarter of this year was the most competitive ever, with only three per cent points separating the top six players in terms of market share.
She said, “Chinese OEMs (original equipment manufacturers), with their ample cost-effective offerings, capitalise on the surge in sales in the low-end segment as migrant workers purchase more affordable, budget smartphones when returning home for the holidays.”
Moreover, the researchers further mentioned the possibility of an iPhone recovery, by saying that they are witnessing slow but steady improvement from week to week, so the momentum could be shifting.
Lam said, “For the second quarter (Q2), the possibility of new colour options combined with aggressive sales initiatives could bring the brand back into positive territory; and of course, we are waiting to see what its AI features will offer come to WWDC in June.”
The researchers also estimated low single-digit (year-over-year) growth for China’s smartphone market in 2024.
ALSO READ: Apple to bring AI features on upcoming iPhones and iOS 18: All you need to know
Recently, Apple has removed Threads and WhatsApp from its App Store by following a directive from the Chinese government. But, other Meta apps including Facebook, Messenger and Instagram, are still available on the App Store in the country.
“We are obligated to follow the laws in the countries where we operate, even when we disagree,” Apple was quoted as saying.
Inputs from IANS