Apple is now running a steep sale on several iPhone models on its own Tmall website in China, with savings of up to 2,300 yuan ($318).
As local competitors like Huawei gain ground in the high-end smartphone market, the U.S. tech giant is taking this step to protect its position. With a 19% decline in smartphone sales during Q1 2024, Apple had its poorest performance in the area since 2020, weakening its grip on the Chinese smartphone market. This slump is happening at the same time as Huawei is launching new products aggressively in an effort to get into the premium market. This resulted in a steep fall in Apple’s market share in China, which fell from 19.7 percent to 15.7 percent.
In the high-end market, Apple was severely hurt by Huawei’s new Pura 70 and Mate 60 series of phones. Apple’s share of the Chinese market fell to 15.7%, almost on par with Huawei’s 15.5% percent—a significant increase from 9.3% a year ago. According to analysts, Apple may see a turnaround in Q2 as a result of intensive sales campaigns and new color choices.
In the vital Chinese market, in particular, Apple is seeing more competition from resurgent homegrown manufacturers such as Huawei. To recover lost ground in China—a crucial revenue driver—the corporation must innovate and adjust its methods.
Apple is under a lot of pressure from all around the world, not only from the Chinese market. According to recent statistics, Apple’s global smartphone sales dropped by about 10% in the first quarter of 2024, and Samsung surpassed Apple to become the leading smartphone maker in the world. The increased level of competition that Apple encounters in all of its key markets is highlighted by the fact that this worldwide decline is being made worse by the presence of several Android smartphone makers.
As it faces the challenges posed by worldwide competition and technology improvements, Apple’s plan for the next several months will have a significant impact on its position in this vital industry. With savings of up to 2,300 yuan, the May 20–28 promotion is far more generous than the one that was presented in February.
