Foreign-branded smartphone shipments in China saw a slight increase in December, reaching 0.6% year-on-year, according to data from the China Academy of Information and Communications Technology (CAICT).
This uptick follows a prolonged slump, with foreign smartphone shipments falling for four consecutive months before December’s modest rebound.
In November alone, shipments plummeted by 47.4% year-on-year, dropping to 3.04 million units from 5.77 million.
The current increase brought the total number of foreign smartphone shipments to 3.74 million units, compared to 3.72 million in the same period the previous year.
Apple was particularly affected, struggling with economic stress, reduced consumer spending, and growing competition from local brands like Huawei.
Huawei has strengthened its market presence, recording a 24% increase in smartphone shipments in the same quarter. The company now holds a 17% market share, closely trailing Apple’s 13.1 million units sold in China.
Huawei’s resurgence has been driven by the introduction of smartphones with locally produced chipsets, which have interested consumers, especially those who favour homegrown technology.
Apple, in an effort to retain its foothold in China, has partnered with Alibaba to integrate artificial intelligence features into iPhones sold in China, leveraging Alibaba’s technology to better tend to local preferences. However, this initiative remains subject to regulatory approval.
Analysts are cautious about Apple’s prospects in the Chinese market nonetheless. The upcoming iPhone SE4 is not expected to drive high sales, as previous SE models have had limited impact.
Again, speculation that the iPhone 17 series may rely entirely on eSIM technology is not sitting well with consumers, given China’s limited carrier support for eSIM.
Foreign smartphone brands have also been struggling with economic issues. A downturn in consumer spending, coupled with the economic slowdown, has dampened demand.
In November, foreign smartphone shipments in China saw a steep decline, plummeting by 47.4% year-on-year to 3.04 million units. This was the fourth consecutive month of declining sales for non-Chinese brands.
Apple responded to these difficulties with a rare four-day promotional campaign, offering price reductions of up to 500 yuan (£55) on its flagship devices.
However, the effectiveness of such short-term discounts remains uncertain, especially as Huawei continues to gain traction in the premium segment.
