A recent report reveals a 24% decline in iPhone sales during the initial six weeks of 2024, exacerbating challenges for Apple and other Western tech giants in the crucial Chinese market. Counterpoint Research analysts attribute this downturn to intensified competition from domestic brands like Huawei, Oppo, and Vivo, alongside broader economic slowdowns and geopolitical tensions.

The mobile market in China has witnessed a 7% decline overall, with prominent players like Apple experiencing notable setbacks. Counterpoint’s Mengmeng Zhang highlights fierce competition at the high-end spectrum from Huawei and pricing pressures from other competitors, constraining Apple’s market reach.

Apple’s stock witnessed a 2.8% decline following the report, contributing to an 11.6% year-to-date decrease amid concerns over weakening sales, particularly in China. Despite ongoing challenges, Apple remains committed to the Chinese market, implementing strategies such as discounts to mitigate the impact of intensified competition.

Huawei’s resurgence, exemplified by the Mate 60 series, poses a significant threat to Apple’s market share. The US government’s scrutiny of Huawei’s technologies has fueled nationalist sentiments among Chinese consumers, driving them towards domestic alternatives like the Mate 60, further challenging Apple’s position.

Counterpoint’s Jeff Fieldhack acknowledges Apple’s strong performance last January, attributed in part to supply shortages. However, without similar constraints this year, Apple faces intensified competition from Huawei, necessitating enhanced marketing and discounting efforts to maintain its market presence.

Despite the current setbacks, Apple’s long-term prospects remain robust, with opportunities for market recovery through strategic initiatives and targeted marketing campaigns. Huawei’s dominance underscores the evolving dynamics of the Chinese mobile market, necessitating adaptive strategies from Western tech companies like Apple to sustain competitiveness.