Compared to the same period last year, China’s demand for international cellphones, including Apple’s iPhone, fell to 47.4% in shipments this November.
China Academy of Information and Communications Technology (CAICT) statistics available to BrandSpur digital news platform show that shipments of these devices decreased to 3.04 million units from 5.77 million units in the previous year.
In China, the largest smartphone market in the world, sales of foreign handsets have been dropping over the past four months. After falling 44.25% year over year in October, November’s numbers kept declining. Due to economic challenges, declining consumer spending, and heightened rivalry from regional brands like Huawei, Apple, the largest foreign smartphone manufacturer in China, is facing these challenges.
A major contributing element to the decline in consumer interest seems to be the economic downturn. Deflationary issues have affected household spending in China, as consumer prices dropped to their lowest levels in five months in November.
Apple launched a unique four-day advertising drive in China to address these problems, lowering the price of its flagship models by up to 500 yuan (£55). In the meantime, Huawei has solidified its position in the market for high-end smartphones. Huawei has seen notable growth since reentering this market in August 2023 with chipsets made in the country.
According to the International Data Corporation (IDC), Huawei’s smartphone sales in China increased by 42% year over year in the third quarter of 2024, while Apple’s sales decreased by 0.3%.
Apple momentarily fell out of the top five smartphone providers in China earlier this year, but it was able to get back on track in the months that followed. Overall smartphone sales in China, including domestic brands, saw a less severe contraction despite the steep drop in shipments of international brands. With 29.61 million units shipped in November, shipments decreased 5.1% year over year.
Global brands are being forced to reconsider their regional strategy as a result of the takeover of local manufacturers like Huawei, which is having an effect on the competitive landscape.
