Foreign-branded mobile phone sales in China edged up slightly in April, with Apple leading despite facing challenges from local competitors.
Official data from the China Academy of Information and Communications Technology (CAICT) revealed that shipments of foreign-made smartphones reached 3.52 million units, barely above the 3.50 million recorded in the same period last year.
But Apple, the top foreign company in China’s smartphone market, is walking a tightrope.
The modest growth in April followed a difficult first quarter where the tech giant’s iPhone sales in the country fell by 9%.
Apple is being squeezed from all sides, by more agile Chinese brands and budget-conscious consumers who are opting for devices with similar performance but lower price tags.
To hold its ground, Apple has turned to discounting. Earlier this month, major Chinese online retailers slashed prices on the latest iPhone 16 models by as much as 2,530 yuan ($351). The aim was to stop the loss and recapture consumer interest before it slides further.
The change in consumer preference is obvious. More Chinese buyers are choosing homegrown brands like Huawei, Xiaomi, and Oppo, which now offer high-performance features at a fraction of Apple’s price.
The days when the Apple logo alone guaranteed authority in China’s premium smartphone segment are slipping away. What we’re seeing is a redefinition of brand loyalty.
The April figures may provide a temporary growth for Apple, but a year-on-year increase of just 20,000 units is hardly a sign of resurgence, but a warning.
Apple’s gamble on price cuts is a short-term solution, we can’t tell if it will translate into sustained growth. A Beijing-based analyst said, “Apple’s value proposition is eroding in a market that no longer views premium as exclusive.”
