A new report this morning claims that Apple Inc. experienced a significant downturn in its iPhone sales in China during the March quarter. More specifically, the report claims that  iPhone shipments declined 19%, marking it the worst performance in the region since the onset of Covid around 2020. This downturn resulted in Apple falling to third place in China's competitive smartphone market, closely aligning with Huawei Technologies Co. According to Counterpoint Research, while the overall market saw a modest expansion of about 1.5%, local brands such as Honor Device Co. and Xiaomi Corp. led the growth.

This period typically sees a surge in consumption due to the Lunar New Year celebrations, making the decline more notable. Huawei's nearly 70% growth in the same timeframe underscores its resurgence, particularly in the premium segment where Apple previously held dominance.

Key Bloomberg Report Points

• Apple's iPhone sales in China plummeted by 19% in the March quarter, its worst since 2020, dropping to third place behind Huawei.
• In response to declining sales, Apple is diversifying by planning to assemble 25% of iPhones in India, aiming for growth in new markets.
• Despite a 14% drop in shares this year amid skepticism, Bank of America remains optimistic about Apple's future due to its defensive cash flows.

 

For more read the full Bloomberg report.

For the record; As of 1:23 AM PST this morning, no Counterpoint report on Smartphone shipments in China has been made public. In addition, TrendForce and Canalys have yet to report on Q1-24 Smartphone shipments in China in order to verify Counterpoint's statistics. Sometimes statistical reports will wildly differ from one another. While there's little doubt that iPhone shipments declined in China this quarter, it's a matter of degree.