Apple‘s recent performance in the Chinese smartphone market presents a mix of challenges and opportunities. Analyst Ming-Chi Kuo from TF Securities has pointed out a significant decline in iPhone shipments, particularly for the iPhone 14 Pro and iPhone 14 Pro Max models, due to supply chain issues at Foxconn. This decline resulted in a reduction of 12 million units in November 2022.
Huawei’s Rise Affects Apple’s Performance in China
Part of this downturn can also be attributed to Huawei‘s resurgence, which is driving structural changes in the Chinese market. Apple expects this trend to continue into 2024, leading to further weakening of shipments.
Despite facing challenges in the fourth quarter of 2023, with flat year-over-year revenue and a 3% drop in share prices following sales forecasts, Apple managed to narrowly exceed revenue estimates, reaching $89.50 billion. The lower-than-expected performance was due to sluggish demand for iPads and wearables, along with a slight decline in revenue in China. However, CEO Tim Cook remains optimistic, highlighting a record-setting sales quarter in September and emphasizing Apple’s commitment to the Chinese market.
This optimism is supported by price reductions for the iPhone 15 series on e-commerce platforms and Apple’s ongoing innovation efforts. Although Apple faces competition from Huawei’s Mate 60 Pro and regulatory challenges, the company’s strategy appears resilient, as evidenced by a recent increase in services revenue and Tim Cook’s visit to China.
On a global scale, Apple maintains a strong market share, leading ahead of Samsung. This strength is also reflected in India, where Apple has reported its highest-ever quarterly growth, with over 2.5 million iPhones shipped, indicating a 34% year-on-year increase.
This surge is attributed to consumers showing interest in premium smartphones, driven by financing options and attractive offers. Apple is expected to expand its market share from 4.5% to 6% in India, thanks to its focus on the market and local production initiatives.
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