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Apple got a little bit of respite from its China woes in March and April when it made headlines for improving iPhone sales in the country. The company even briefly beat its Chinese competitors when it offered steep discounts on its smartphones during an online shopping festival in May.
But looking at the overall numbers, even Apple’s steepest discounts — following price cuts earlier this year — haven’t been enough to boost performance in China, and the tech giant is still far behind Chinese rival Huawei. Apple’s iPhone shipments in Mainland China fell slightly to 9.7 million units in the second quarter, from 10 million in the first quarter. Apple’s iPhone shipments aren’t down quite as dramatically compared to last quarter, though. In the first quarter of 2024, iPhone shipments in China were 25% lower than the year before. Second-quarter shipments are only 6.7% lower than the same period in 2023, according to Canalys research reviewed by Reuters.
As Apple continues to struggle in China, homegrown Huawei is thriving. Huawei’s smartphone shipments skyrocketed 41% for the three months ended June 30.
Luckily, Apple is beginning to plant seeds elsewhere in Asia. The company’s sales in India are booming just a year after Apple opened its first physical store in the country. Apple has looked to strengthen its relationships with India and Vietnam on the supply side, too, as the company seeks to reduce its reliance on China.
Apple CEO Tim Cook still thinks China is an important market, though. The executive made a trip to China in March to strengthen ties with developers and suppliers there.
By the numbers
9.7 million: iPhones shipped in China during the second quarter of this year
6.7%: How much iPhone shipments are down in China compared to last year
41%: How much Huawei shipments increased in the second quarter from last year