Worsening iPhone Problems in China with Sales Decline
An independent study by “Counterpoint Research” has revealed a surprising decline in Apple’s iPhone sales in China, dropping by 24% during the first six weeks of this year, according to the American site “Bloomberg”.
According to the study, the mobile phone market in China contracted by 7% in the initial weeks of this year, with the lion’s share going to “Vivo”, which targeted the budget segment.
To boost demand, Apple offered rare discounts on its online store in January, and online sellers are now cutting prices by up to $180.
According to “Bloomberg”, Apple’s stocks fell by 2.4% in New York on Tuesday morning, nearly 11% since the beginning of the year. This caused the company to lose its title as the most valuable in the world, and it was also removed this month from “Goldman Sachs” list of top investments, as well as from “Evercore ISI” list of superior tactical performance.
Additionally, “Hon Hai Precision Industry Co”, the assembler partner for iPhones, reported a sales drop of 18% in the first two months of the year. The phone accounts for over half of Apple’s sales and a significant portion of the Taiwanese company’s income.
The study highlighted that the Cupertino-based company in California is looking to increase its investments in other major ventures, diversifying its product range, and focusing on chasing competitors in the artificial intelligence field.
Meanwhile, “Huawei Technologies”, based in Shenzhen, has been a thorn in Apple’s side since the sudden appearance of local “Mate 60 Pro” devices, triggering a wave of Chinese purchases to take a share from the American company.
Huawei’s market share jumped to 16.5% in the first six weeks, up from 9.4% previously. Meanwhile, Apple’s market share dropped to less than 16%.
