Why did Apple’s sales decline in China?… The apple is losing its allure

Apple’s sales dropped by 13% in China in the quarter ended in December to $20.8 billion, contrary to expectations of $23.5 billion.

This comes amid increasing competition with local entities, and consumers are cautioned against spending due to economic slowdown.

Apple’s weak sales in China may have been a shock to investors, but customers and analysts have pointed to the growing challenges the company faces in its third-largest market.

The company’s shares fell by about three percent in early trading today, Friday, after disappointing sales in China.

Toby Chu, an analyst at Canalys, said: “Apple’s decline in sales in China is not surprising given the strong competition it faced from local brands like Huawei and Xiaomi.”

China, the world’s largest smartphone market, plays a major role in Apple’s sales growth, which remained for years the leading phone brand in the country with the second-largest economy in the world before the situation changed currently.

Pressure on Apple increased in the second half of 2023 after Huawei returned to the advanced smartphone market with the Mate 60 series powered by a locally-made chip.

Sales of Xiaomi, operating on the Android operating system, also increased in China after Apple had dominated the market for years. Xiaomi launched its flagship phones (Mi 14) in October 2024 with longer battery life and increased camera capabilities. The company sold a million units within a week of the phone’s launch.

Chinese consumers also complain about the lack of innovation in Apple’s iPhone devices, especially in aesthetic design compared to previous versions.

Apple reduced prices of its phones to support its sales in China. Alibaba Group and, retail companies, launched strong offers to sell Apple’s iPhone 15 stock just one month after its launch in the country. In January, Apple offered rare discounts on iPhones.

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