Article written by VOLF.TV TEAM , content strategy and produced by Manjeet Bhatt.
Apple’s latest flagship, the iPhone 15, is encountering a slowdown in sales within China compared to its predecessor, the iPhone 14. Sales data from Counterpoint Research reveals that in the first two weeks following its launch, the iPhone 15 has experienced a 4.5% decline in sales compared to the iPhone 14. This downturn coincides with the strong demand for Huawei’s new Mate 60 smartphone line, according to financial firm Jefferies. Apple’s stock (AAPL) saw a minor 0.08% drop following these reports.
Several factors are contributing to this decline in iPhone 15 sales. Firstly, the Chinese economy is facing challenges, including a struggling housing market, and there is increased competition among higher-end smartphone vendors, with Huawei being a prominent domestic competitor.
Jeff Fieldhack, research director at Counterpoint, attributes some of the sales drop to Chinese consumer nationalism. Chinese consumers who may feel aggrieved by the US government’s actions and sanctions are gravitating toward Huawei’s Mate 60, impacting Apple’s sales in the region. However, while Huawei is gaining traction, it is not expected to surpass Apple’s smartphone sales immediately.
Despite these challenges, China remains a crucial market for Apple, being the second-largest market after the US. Fieldhack anticipates that the continued interest in Huawei’s Mate 60 will continue to affect Apple’s sales.
In contrast, the iPhone 15 is experiencing robust growth in the US, with a year-over-year increase of about 10%. This is a positive development for Apple, particularly as sales had been falling for three consecutive quarters leading up to the iPhone 15’s launch.
The iPhone 15 series introduces various enhancements, including a slimmer design, an advanced main camera system, and a customizable Action button. One notable change is the shift from Apple’s proprietary Lightning charging cable to a USB-C charging cord, marking an 11-year run.
Notably, the Mate 60, launched in late August, has made headlines due to the US government’s interest in its 5G Kirin 9000s processor. This processor’s development raised questions about how Huawei managed to create it amid US efforts to restrict China’s access to foreign chip technology due to national security concerns. Consequently, the competition between Apple and Huawei in China has intensified, with Huawei making significant strides in the premium smartphone market.
If current estimates hold true, the iPhone 15 may experience its weakest debut in China since 2018, potentially indicating a shift in the premium smartphone market as domestic brands like Huawei gain prominence.
This article has been written by VOLF.TV TEAM , content strategy and produced by Manjeet Bhatt.
