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Apple's China challenge deepens as foreign phone sales slump
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Apple's China challenge deepens as foreign phone sales slump
Jan 3, 2025 12:51 AM

BEIJING, Jan 3 (Reuters) - Shipments to China of

foreign-branded smartphones, including Apple Inc's ( AAPL )

iPhone, fell by 47.4% in November from a year earlier, according

to data released on Friday from a government-affiliated research

firm.

Calculations based on the data from the China Academy of

Information and Communications Technology (CAICT) showed that

foreign brand shipments decreased to 3.04 million units from

5.769 million units a year earlier.

The decline follows October's 44.25% year-on-year drop in

foreign smartphone shipments, extending a sharp downward trend

in the world's largest smartphone market.

Apple ( AAPL ), the dominant foreign smartphone maker in China, faces

a slowing economy and surging competition from domestic rivals

like Huawei.

Chinese consumer prices fell in November to their lowest in

five months, as economic uncertainty and deflation concerns

weigh on household spending.

As its market share declines, Apple ( AAPL ) launched a rare

four-day promotion in China on Thursday, cutting prices by up to

500 yuan ($68.50) on its flagship models to boost sales.

Huawei has emerged as a particularly strong challenger since

its return to the premium segment in August 2023 with

locally-made chipsets.

Apple ( AAPL ) briefly fell out of China's top five smartphone

vendors in the second quarter of 2024 before recovering in the

third quarter. The U.S. company's smartphone sales in China

still slipped 0.3% during the third quarter from a year earlier,

while Huawei's sales surged 42%, according to research firm IDC.

Shipments of phones within China, which include domestic

brands, fell 5.1% year-on-year in November to 29.61 million

handsets.

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