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According to Bloomberg, data from Counterpoint Research shows that in the first six weeks of this year, tech giant Apple's iPhone sales in China fell by a total of 24. The current iPhone has slipped to the fourth place among Chinese smartphone manufacturers.
Apple has now ceded the title of "China's best-selling smartphone maker" to the Dongguan-based Vivo maker, Counterpoint said. Vivo has been quite successful in targeting markets at the lower price points. Nevertheless. Apple and Vivo both saw declines in smartphone sales. This was due to the contraction of the overall Chinese market7. This also dashes hopes that China's smartphone market will be the best in the short term.
On the other hand, the Mate 60 Pro from Huawei Technologies*** is gaining momentum. Coupled with the buying boom of Chinese buyers supporting domestic goods, Huawei's market share has also increased from 94 to 165％。The company spun off from Huawei in 2020, Honor Device Co) is the only smartphone manufacturer in the market to achieve 2 sales growth. Apple's current market share is 157, down from 19 a year ago.
In an effort to spur demand, Apple launched a rare discount on its official website in January, and online iPhone dealers are now slashing prices by as much as $180. This shows how fierce the competition in the Chinese market is.
The Goldman Sachs Group recently removed Apple from its top picks list due to weak demand for products such as the iPhone and weak stock price movements.
Since the list was announced in June last year, Apple has been on Goldman Sachs' top picks. During this period, Apple's share price was almost unchanged, while the S&P 500 index was nearly 22.
The decline of Apple's iPhone in the Chinese market reflects the competition and challenges Apple faces in China, and also affects Apple's stock price and market capitalization. On the one hand, Apple's iPhone has encountered strong opponents from domestic mobile phone brands in China, such as vivo, Huawei, Honor, Xiaomi, OPPO, etc., which not only have advantages in terms of technology, but also continue to progress in technology and innovation to meet the diverse needs of Chinese consumers. On the other hand, Apple's iPhone has also been affected by politics and economy in China, such as the Sino-US war, the new crown epidemic, domestic substitution, etc., all of which have weakened Apple's brand image and market share in China.
Apple's woes in the Chinese market have also put pressure on Apple's global performance. China is Apple's second-largest market, accounting for nearly 15 percent of Apple's total revenue. The decline in sales of Apple's iPhones in China means that Apple's profits and cash flow will also suffer. In addition, Apple's iPhone has not performed well in other countries, such as India, Japan, Europe, etc., all facing the problem of competition and market saturation of the Android system.
Goldman Sachs Group Inc. removed Apple from its top pick** list because it was not optimistic about Apple's growth prospects. Goldman Sachs Group believes that Apple's iPhone demand will begin to slow down in the second half of 2024, and Apple's other businesses, such as services, wearables, Macs, etc., will also be difficult to make up for the decline in iPhone. Goldman Sachs Group Inc. lowered Apple's price target to $140 from $150 while downgrading Apple's rating to "hold" from "**".
In short, Apple's iPhone loss of advantage in the Chinese market is an important challenge for Apple in the global market, and it is also an important pressure on Apple's stock price and market value. Apple needs to adopt more effective strategies and measures in the Chinese market to improve the competitiveness and attractiveness of its products, as well as the interaction and trust of Chinese consumers. Apple also needs to strengthen the innovation and diversification of its products in the global market to cope with the competition and market changes of the Android system, so as to maintain its leading position in the smartphone field and contribute to the development and progress of the technology industry.
Information**
1: Apple's iPhone has fallen out of favor in the Chinese market, and domestic mobile phones such as Huawei and Vivo have risen
2: apple iphone sales worldwide 2007-2022
3: goldman sachs drops apple from its list of top stocks to buy