(Transcribed with OpenAI Whisper)
iPhone sales in China to fall double digits, Jeffrey says. Apple Inc.'s iPhone sales slump in China is deepening and the company is likely to see volumes decline further this year, according to Jeffrey's analysts led by Edison Li. The iPhone maker's latest generation got off to an atypically sluggish start in China last year, which most recently expanded to a 30 percent year-on-year decline, Li and colleagues said in a note on Sunday, citing industry checks. The rest of the country's mobile market grew in December, with Huawei Technologies' company growing fastest on the back of its new Mate 60 device lineup. Weeks before the iPhone 15 went on sale in September, Huawei's debut of the Mate 60 Pro, which runs on a new made-in-China system processor, spurred a patriotic fervor that reclaimed some of the customers it previously lost to Apple. Jeffrey's estimates Huawei shipped 35 million smartphones in 2023, with some supply constraints preventing that number from being larger. Apple saw a double-digit fall in volumes in December and Jeffrey's forecasts a similar decline for 2024. Discounts on Apple's smartphone range increased last week across various online shopping portals, cutting into the average selling price without stimulating growth in volume. Apple gained share in China after U.S. sanctions cut Huawei off from the world's leading chipmakers, such as Taiwan Semiconductor Manufacturing Company, in 2020. The Xinjiang-based electronics firm's return to competitiveness in the mobile market has seen it claw back market share, and it's now developing its own software ecosystem to compete with Apple's iOS and Alphabet Inc.'s Android.
Key Takeaways from the Article:
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Declining iPhone Sales in China: Apple Inc. is experiencing a deepening slump in iPhone sales in China, with analysts led by Edison Li at Jeffrey's predicting further declines this year.
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Sluggish Start for Latest iPhone Generation: The latest iPhone generation had an unusually slow start in China last year, recently expanding to a 30% year-on-year decline, according to industry checks cited by Li and colleagues.
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Growth of Competitors: While Apple's sales declined, the rest of China's mobile market grew in December, with Huawei Technologies leading the growth, fueled by its new Mate 60 device lineup.
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Impact of Huawei's Mate 60 Pro: Huawei's Mate 60 Pro, featuring a new made-in-China system processor, spurred patriotic support and reclaimed some customers previously lost to Apple. Huawei shipped an estimated 35 million smartphones in 2023.
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Apple's Double-Digit Volume Fall: Apple experienced a double-digit fall in sales volumes in December, and Jeffrey's anticipates a similar decline for 2024.
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Discounts and Impact on Sales: Despite increased discounts on Apple's smartphone range across various online platforms, there hasn't been a corresponding growth in sales volumes.
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Market Share Shifts: Apple gained market share in China after U.S. sanctions impacted Huawei in 2020. However, Huawei's resurgence in the mobile market has enabled it to regain market share.
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Huawei's Software Ecosystem Development: Huawei is developing its software ecosystem to compete with Apple's iOS and Alphabet Inc.'s Android, signaling a significant competitive shift in the market.
The article highlights the challenges Apple faces in the Chinese market, notably from the resurgence of Huawei, and underscores the dynamic and competitive nature of the smartphone industry in China.