iPhone 15 Sales in China Falter as Huawei Surges: What's Behind the Slide?

Apple's flagship device, the iPhone 15, is experiencing a cooler reception in China compared to its predecessor, the iPhone 14, as per recent reports. Data collected by market tracker Counterpoint Research revealed that sales of the iPhone 15 dropped by 4.5% during the first 17 days after its release when compared to the iPhone 14. Meanwhile, Jefferies analysts painted a bleaker picture, estimating a double-digit percentage drop in sales for the iPhone 15 compared to its predecessor.

This decline marks a concerning trend for Apple, especially as it grapples with the weakest smartphone demand in a decade, exacerbated by backlash over overheating models. These figures suggest one of the iPhone's weakest debuts in China since 2018 when local brands like Oppo and Vivo began to captivate Asian consumers.

Factors Impacting iPhone 15 Sales

Counterpoint Research attributes the iPhone's slump in China primarily to an economy struggling to recover from the impact of the COVID-19 pandemic. On a brighter note, the iPhone 15 likely posted double-digit growth over 2022 sales during its first nine days in the United States, offering some relief for Apple.

However, Apple's iPhone 15 launch in China coincided with the debut of Huawei's Mate 60 Pro, a device celebrated for its advanced made-in-China processor. Huawei's ability to surpass Apple in overall sales in China, propelled by the Mate 60 Pro's success, highlights Apple's growing challenges in the country.

Additionally, the Chinese government expanded its ban on iPhone use to government agencies and state companies around the same time, further impacting Apple's prospects in China.

Huawei's Ascendancy and the Road Ahead for Apple

Analysts remain divided on the long-term implications for Apple in China, the world's largest smartphone market. Many believe that Huawei's growing prominence could erode Apple's dominance in the higher-end segment of the market.

Counterpoint Research estimates that Huawei could sell between 5 to 6 million units of the Mate 60 Pro in China this year, a number expected to reach double digits by 2024. In fact, Huawei has now claimed the top position in the market, surpassing Apple.

Jefferies analysts predict that this trend could lead to Huawei outperforming Apple in 2024. The weak demand for iPhones in China may eventually result in lower global shipment figures than expected.

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