As per the official data released last week, foreign smartphone sales in China witnessed a significant decline in November, highlighting increasing challenges for Apple as it faces intensifying competition from domestic brands in the world’s largest smartphone market.
Calculations by CNBC based on data from the China Academy of Information and Communications Technology (CAICT) revealed that international handset shipments fell to 3.04 million units, marking a 47.4% decrease from November 2023 and a steep 51% slump from October 2024.
Although CAICT does not provide specifics for individual brands, it’s evident that Apple commands a substantial portion of the foreign mobile phone shipment in Beijing, along with marginal participation from companies like Samsung.
The recent figures underscore the pressure Apple is experiencing, particularly given the resurgence of Huawei, in which, following a period of struggle due to U.S. sanctions, the Chinese tech giant has bounced back and launched premium devices that have resonated well with domestic consumers.
Recent data from IDC, a research firm, reflected Huawei’s rapid growth, which notably surpassed Apple in 3Q24, while the iPhone maker hoped to regain its foothold by introducing the iPhone 16 series in September, laced with promises of innovative artificial intelligence features through its new Apple Intelligence software.
Nonetheless, the software’s rollout in China is stalled, hindered by the nation’s stringent AI regulations. This gives an edge for domestic competitors as some have pushed forward with their AI offerings, a move that could potentially outpace Apple’s current innovations within the region.
CEO Tim Cook made several trips to Beijing last year in efforts to establish and strengthen partnerships with local Chinese firms, particularly around the company’s Apple Intelligence initiative.
In an attempt to bolster interest towards its iPhone 16 line, Apple has initiated discounts for its latest products as part of a promotional strategy celebrating the Lunar New Year.
