The demand for foreign smartphones in China, including Apple’s iPhone, dropped to 47.4% in shipments this November compared to the same period last year.
According to data from the China Academy of Information and Communications Technology (CAICT), shipments of these devices fell to 3.04 million units, down from 5.77 million units a year earlier.
This is the fourth consecutive month of declining sales for foreign smartphones in the world’s largest smartphone market, China.
November’s figures continued to move downwards, following a 44.25% year-on-year drop in October. Apple, the highest foreign smartphone manufacturer in China, is faced with economic issues, reduced consumer spending, and increased competition from local brands such as Huawei.
Economic downturn appears to be a big factor in dampening consumer interest. Chinese household spending has been impacted by deflationary matters, with consumer prices in November falling to their lowest levels in five months.
To counter these issues, Apple initiated a rare four-day promotional campaign in China, offering price cuts of up to 500 yuan (£55) on its flagship models.
Meanwhile, Huawei has strengthened its place in the premium smartphone market. Since re-entering this segment in August 2023 with its domestically-produced chipsets, the company has reported significant growth.
In the third quarter of 2024, Huawei’s smartphone sales in China surged by 42% year-on-year, while Apple’s sales dipped slightly by 0.3%, according to the International Data Corporation (IDC). Earlier in the year, Apple briefly dropped out of China’s top five smartphone vendors but managed to regain its footing in subsequent months.
Even with the sharp decline in foreign-brand shipments, overall smartphone sales within China, including domestic brands, experienced a less severe contraction.
Shipments fell by 5.1% year-on-year in November, totalling 29.61 million units. The taking over of local manufacturers like Huawei is impacting the competitive space, challenging global brands to reassess their strategies in the region.
