Apple’s problems in China haven’t stopped it from becoming the country’s smartphone leader.
Despite the company’s decline in shipments, the iPhone was the most popular mobile phone among Chinese consumers in 2023, according to research released by IDC on Thursday, January 25th.
According to the report, Apple commanded 17.3% of the smartphone market share, up from 16.8% in 2022, with China-based rival Huawei breaking into the top five for the first time.
Arthur Guo, senior research analyst for client systems research at IDC China, said: “Apple’s rise to the top spot in 2023 is unlikely, especially given renewed competition with Huawei and softening consumer confidence. “This represents a huge success for Apple.” “Apple achieved this thanks to timely price promotions on third-party channels, stimulating demand.”
China shipped a total of 271.3 million smartphones last year, down 5% from 2022 and the lowest shipment in a decade. The report attributes this to “moderate economic recovery and weak consumer sentiment.”
These findings follow IDC’s report on the global smartphone market last week, which showed a similar pattern. Apple has replaced Samsung at the top for the first time ever, but overall smartphone sales are here at their lowest in a decade.
In recent weeks, there has been a flurry of negative press surrounding Apple’s sales in China, and last week the company announced discounts on its latest iPhone models due to weak demand.
Apple also faces further restrictions on iPhone use in China, where government officials and employees of state-owned enterprises are banned from using the devices.
This month, analysts at Jefferies also reported that iPhone sales in China were down 30% in the first week of 2024. Analysts argued that Apple would be under increased pressure from rivals throughout this year and expected the company’s shipments to decline in 2024. In China, the double-digit decline will continue in 2024, but Huawei will increase its market share.
And Barclays recently predicted that demand for the iPhone would continue to be weak, causing the company’s stock price to decline and erasing more than $107 billion in market value.
“We expect a reversal after a year of mostly unsuccessful quarters and stock outperformance,” the bank’s analysts said in a note. “Our checks show that iPhone 15 sales and configurations remain negative, and we don’t see any features or upgrades that could make iPhone 16 more attractive.”