There are both possibilities and problems associated with Apple’s recent performance in the Chinese smartphone market. Due to supply chain problems at Foxconn, analyst Ming-Chi Kuo of TF Securities has seen a notable drop in iPhone shipments, especially for the iPhone 14 Pro and iPhone 14 Pro Max models. In November 2022, the number of units decreased by 12 million as a result of this fall.
Huawei’s Rise Affects Apple’s Performance in China
A portion of this decline can also be linked to Huawei’s comeback, which is causing the Chinese market to undergo fundamental changes. Apple anticipates that shipments will continue to decline as a result of this trend until 2024.
Apple just beat revenue predictions in the fourth quarter of 2023, hitting $89.50 billion, although confronting difficulties like flat year-over-year revenue and a 3% decline in share prices after sales forecasts. The slowing demand for iPads and wearables, combined with a little drop in sales in China, was the cause of the lower-than-expected performance. CEO Tim Cook, meanwhile, is still upbeat, pointing to September’s record-breaking sales quarter and stressing Apple’s dedication to the Chinese market.
Price cuts for the iPhone 15 series on online retailers and Apple’s continuous innovation initiatives lend credence to this confidence. Tim Cook’s visit to China and a recent gain in services revenue show that Apple’s approach is robust, despite regulatory obstacles and competition from Huawei’s Mate 60 Pro.
Apple continues to have a substantial market share worldwide, outpacing Samsung in the lead. This momentum is evident in India as well, where Apple announced its best-ever quarterly performance, shipping over 2.5 million iPhones, or a 34% rise year over year.
This increase is explained by customers’ desire in high-end cellphones, which is being fueled by alluring offers and financing possibilities. Due to its market emphasis and local production activities, Apple is anticipated to increase its market share from 4.5% to 6% in India.