The competition between Huawei and Xiaomi has caused Apple's revenue in the Chinese market to drop by 22 billion
Apple's fourth-quarter 2023 earnings report showed that the company's revenue was 11957.5 billion yuan, up 2% year-on-year; The profit was 4037.3 billion yuan, a year-on-year increase of 121%。
On the other hand, Apple's revenue in Greater China fell sharply.
According to the data, Apple's revenue in Europe, the Americas, Japan and the rest of Asia Pacific increased year-on-year, with only Greater China (including Chinese mainland, Hong Kong and Taiwan) declining with revenue of 2081.9 billion yuan, down 129%, down 30$8.3 billion.
China was the only region where Apple's revenue fell in the first quarter of this year, and it was also the worst quarter in Greater China since fiscal 2020.
At the same time, Apple's share of revenue in Greater China fell to 1741%, a new low in recent years.
As you can see from the chart above, Apple's sales in China will drop to less than 15% by 2020, and the reason is well known, Huawei was already the largest premium mobile phone brand in China at that time, with a 40% market share.
However, as Huawei's sales have stagnated and deteriorated, Huawei has ceded the market to Apple: as of 2021, Huawei's turnover in China accounted for about 18%, falling to 1741%。
Why is Apple only declining in the Chinese market? Of course, Huawei's strong rise in China, as well as Xiaomi's rise in the Chinese mobile phone market, will be evident in the fourth quarter of 2023.
As you can see from the chart above, while Apple was the largest seller in Q4 2023, actual sales fell by 106%, and the iPhone 15 is actually selling at a reduced price in 2023, resulting in a drop in sales and an even bigger drop in revenue.
Huawei, a competitor to Apple's iPhone 15, saw a 79 increase in sales3%, mainly due to the hot sales of the Mate60 series, which sold 5 million more units than a year ago.
Similarly, Apple's competitor Xiaomi is in"Xiaomi Mi 14"Sales have also increased by 38 since then4%, 3 million more than the same period last year.
This has affected sales of the iPhone 15, Mate60 series, and the Xiaomi 15 series, which has some overlap with the iPhone 14.
Cook wasn't very happy, though, explaining that with only 14 weeks in the quarter compared to 13 weeks in the same period last year, revenue would definitely fall, plus a decrease in revenue due to the appreciation of the yuan against the yuan.
Cook defended himself by saying that Apple is still popular with consumers in China, with four of the country's six best-selling smartphones coming from Apple.
Many believe that Cook is simply not willing to accept this fact, and that Huawei and Xiaomi will submit more data to hit Apple hard.