Apple Maintains Top China Market Position Despite Declining Sales

Apple continues to maintain market dominance in China, despite the decline in iPhone sales in the first weeks of 2024. The iPhone is likely to maintain its technological superiority amid intensifying competition with Chinese rivals. Pamir observes that US high-tech firms like Apple will face ongoing risks from central government efforts to achieve political objectives in the Chinese economy. Navigating US-China geopolitical tensions is increasingly a requisite for effectively managing China market risks. 

On 5 March Counterpoint Research, a global tech market research firm, reported that iPhone sales in China dropped 24% in the first six weeks of 2024, reducing iPhone’s China market share from 19% at the end of 2023 to 15.7%. The decline in iPhone sales occurred when China’s overall cellphone sales dropped 7%, affecting all foreign and domestic brands. 

Industry experts point out that iPhone’s overall market position remains strong and Chinese consumers continue to be drawn to iPhone’s brand name, technology, and performance. 

• In 2023, iPhone maintained its top position in China’s smartphone market, according to several market research sources. 
• Canalys, a Singapore-based global technology market research firm, reported that 54.32 million iPhones were sold in China in 2022, significantly more than its closest Chinese competitors: Xiaomi (43.48 million), OPPO (30.63 million), and Honor (29.82 million). 

The competition in China’s smartphone market is intensifying, with Apple’s dominance in the high-end smartphone being challenged by Huawei’s Mate 60 and significant price drops by other Chinese brands. However, iPhones are likely to maintain their technological superiority, especially as the US continues to restrict exports of critical technologies, rendering it difficult for Chinese firms like Huawei to make technological upgrades.

• On 29 August 2023, the US-sanctioned Huawei introduced its Mate 60 smartphone, which has functions similar to the iPhone 15. Chinese media hailed Mate 60 as a victory in China’s efforts to break US sanctions. Huawei sold 1.5 million Mate 60 in September 2023. 

Analysts add that Apple has stayed away from US-China geopolitical tensions and that the Chinese government, at least publicly, still views Apple as a “positive force” in stabilizing US-China relations. Nevertheless, Apple and iPhones have not been immune from the ongoing US-China strategic competition.

• Despite Chinese government denials, the Wall Street Journal reported in September 2023 that officials in central government agencies were ordered not to use iPhones or other foreign-branded devices for work or take them to government offices. Chinese social media reported that some Chinese government agencies and state-owned enterprises have banned the use of iPhones in those facilities. 
• On 4 March, in response to an earlier comment by US Commerce Secretary Gina Raimondo, who highlighted security risks posed by Chinese-made vehicles in the US, China’s Foreign Ministry spokeswoman stated, “By this logic, should China be more worried about Washington sending Chinese users’ information to the US via hundreds of millions of iPhones or even disable them simultaneously?” Her response was carried by all major Chinese media outlets.