BEIJING (Reuters) – The latest data released by a government-affiliated research firm, the China Academy of Information and Communications Technology (CAICT), indicates a significant 47.4% year-on-year decline in shipments of foreign-branded smartphones to China in November. This includes devices from tech giant Apple Inc, notably its flagship iPhone. This marks the fourth consecutive month of decline in foreign brand shipments, with units dropping to 3.04 million from 5.769 million a year earlier.
The downturn continues a trend observed in October, where foreign smartphone shipments plummeted by 44.25% year-on-year in the world’s largest smartphone market. Apple, a dominant player in the foreign smartphone market in China, is facing challenges from both an economic slowdown and fierce competition from local rivals such as Huawei.
The data also revealed that Chinese consumer prices experienced a decline in November, reaching their lowest point in five months. Economic uncertainties and deflation concerns are cited as factors influencing consumer spending habits. In response to its diminishing market share, Apple recently implemented a rare promotional event in China, offering discounts of up to 500 yuan ($68.50) on its flagship models to stimulate sales.
Huawei, on the other hand, has emerged as a formidable competitor following its reentry into the premium segment in August 2023, bolstered by the use of locally-made chipsets. Notably, Apple briefly slipped out of China’s top five smartphone vendors in the second quarter of 2024 before rebounding in the subsequent quarter. Despite this recovery, the U.S. company still recorded a 0.3% decline in smartphone sales in China during the third quarter compared to the previous year, while Huawei experienced a notable 42% increase in sales during the same period, as reported by research firm IDC.
Overall smartphone shipments within China, encompassing both domestic and foreign brands, saw a 5.1% year-on-year decrease in November, totaling 29.61 million handsets. The evolving landscape of the Chinese smartphone market reflects the complex interplay between economic factors, consumer preferences, and competitive dynamics among industry players.
(Reporting by Liam Mo and Brenda Goh; Editing by Christian Schmollinger, Elaine Hardcastle, and Barbara Lewis)
