REUTERS/Aly Song
We invite you to explore the importance of the market in “China” for the giant “Apple” when iPhone sales in the first quarter of 2024 worldwide fell by 9.6% after being affected by sales in China which were strongly stagnant.
On April 16, 2024, Bloomberg News Agency (Bloomberg) reported based on information from International Data Corporation (IDC), a provider of marketing consultancy services in the technology industry, said that shipments of “Apple” smartphones (Apple) in the first quarter of 2024 they totaled 50.1 million units, down from the same period of the previous year 9.6%, in contrast to overall global smartphone shipments of more than 289.4 million units, with an increase of 7.8% compared to the same period of the previous year.
The report states that Apple smartphone shipments in the period This is a lower level than in 2022, when there was still a COVID-19 epidemic. and supply chain issues This is also lower than analysts’ estimates of 51.7 million units, the main factor being that sales in “China” fell.
Previously, a report from Counterpoint Research, a technology market research firm, said that smartphone sales in China fell 7 percent in the first six weeks of the year, with Apple’s unit sales falling by 24 percent. % compared to the same period last year The remaining market share is 16% compared to 19% last year.
And from the fiscal 2024 first quarter earnings report (ending December 30, 2023), net sales from Greater China were $20,819 million. It is second only to the United States with 50,430 million dollars and to Europe with 30,397 million dollars. This reflects that China is a potential market for Apple, accounting for 17% of the total revenue of $119,575 million.
The factor causing slowdown in iPhone sales in China comes from intensifying competition with local brands. Especially the launch of the “Mate 60” series, the flagship smartphone from “Huawei” (Huawei) competing for a share in the premium group. Geopolitical tensions between China and the United States and the trend to ban Chinese government officials from using iPhones
“Competition is growing in China,” said Nabila Bhopal, research director at IDC. This caused Apple’s sales to decline in the first quarter, with Chinese brands trying to use aggressive strategies to increase sales, such as Xiaomi lowering prices to free up inventory and Huawei launching the smartphone series Mate 60 with a 7nm architecture chip made in China. and the HarmonyOS operating system, etc.
However, Apple is trying to regain trust in the Chinese market in several directions. From the Special Discount promotion on the official website of the online store in China. Stimulate sales and consumer purchasing power And some of Apple’s retail partners offer discounts of up to $180 off the regular price, which is rare.
Apple also opened a new Apple Store in China. Using the name “Apple Jing’an”, it is the eighth official store in Shanghai, which is the city with the largest number of Apple Store branches in China, on March 21, 2024, by “Tim Cook”, CEO of Apple to open this branch in person. And it was his third visit to China in 12 months.
Apple also announced that it will expand its laboratories in Shanghai. and opened a new laboratory in Shenzhen. Its focus on research and testing of key products such as the iPhone and Vision Pro glasses reflects that China is not just an important market after the United States. But it’s also an important supply chain for Apple.
Photos from the opening of the new Apple Store in Shanghai – Apple Newsroom
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