Apple's Q1 iPhone Sales in China Plunge as Huawei Soars

In the first quarter of 2024, Apple Inc. witnessed a decline in its smartphone sales in China, with a 19.1% drop as compared to the previous year. Concurrently, Huawei Technologies Co. experienced a significant surge in sales, with a reported increase of 69.1%. This shift in sales dynamics has led to a decrease in Apple's market share in China from 19.7% to 15.7%, marking a challenging period for the company that had previously dominated the high-end segment of the Chinese smartphone market.

While Apple grapples with its declining share, Huawei's market presence has grown, with its share climbing from 9.3% to 16.5%. This growth has brought Huawei to a competitive position against Apple in the Chinese market. The overall smartphone market in China saw a slight increase of about 1.5%, with local brands such as Honor Device Co. and Xiaomi Corp. driving the growth. Despite the setbacks in market share and sales, analysts from institutions like Bank of America maintain a positive outlook on Apple's future, citing its robust cash flows as a strong defensive attribute.