In the first six weeks of this year, sales in China dropped by 24%! Apple has found the reason for the price reduction.

Last night, Apple just received a hefty $18 billion antitrust fine from the EU, and they are facing more than just one trouble.

The latest data released by the consumer electronics research firm Counterpoint shows that in the first six weeks of this year, Apple's sales in China dropped by 24%, ranking fourth among all brands, with its market share decreasing from 19% in 2023 to 15.7%.

In contrast, Huawei's market share has increased from 9.4% to 16.5%.

Apple Loses Top Sales Position and Starts Unusual Price Cuts

The sluggish sales of Apple have been showing signs for a while.

Wall Street News previously mentioned that just before the Lunar New Year, Apple unusually launched a "Chinese New Year Limited Time Offer." Among them, the Apple 15 series of 4 models were discounted by 500 yuan, and some laptop products were discounted by up to 800 yuan, while iPad Pro, iPad Air, and others also saw corresponding price cuts.

Normally, Apple's promotional activities usually start after the Spring Festival and the 618 Shopping Festival. Starting price cuts early indicates that the continuously declining sales and intense competition have made Apple anxious.

Moreover, Apple's strategy of trading price for volume continues.

During the Women's Day promotion on March 8th, Apple 15 once again saw a significant price cut, with a direct discount of over a thousand yuan. Wall Street News found that after stacking store coupons and platform coupons, the same Apple 15 Pro 256G is priced at 7999 yuan on Taobao and 7849 yuan on the official Apple flagship stores on JD.com, far below the official price of 8999 yuan.

Huawei's Sales Surge Against the Market Trend

Counterpoint data also shows that in the first six weeks of this year, replacing Apple as the top seller is Vivo, with more models and a wider presence in the lower-tier markets.

According to Counterpoint's statistics at the beginning of the year, Apple's annual shipments in China in 2023 ranked first among all brands, with Vivo following closely in second place, also the top Chinese brand.

In the fierce competition, Huawei has shown remarkable resilience. Sales surged by 64% in the first six weeks, and after a market share growth of about 6% in the fourth quarter of last year, Huawei's market share in the first six weeks of this year increased from 9.4% to 16.5%.

According to Jefferies' forecast, Apple's shipments are expected to continue to decline by double digits in 2024, while Huawei's market share is expected to continue to expand. In 2020, Honor, which was spun off from Huawei, is the only brand besides Huawei to achieve sales growth, with an increase of 2% according to Counterpoint's statistics.

Counterpoint analyst Ivan Lam told the media:

"Despite the decline in consumer confidence, Huawei's increased production capacity allows it to meet the demand for its popular Mate 60 series... While the previous year was quite sluggish, Apple still has more room for maneuver in the short term. The aggressive promotions before Women's Day are just one example."