Apple is grappling with intensified competition and a slowing economy in China, its second-largest market. The company’s dominance as the top foreign smartphone maker in the country is being eroded by a combination of factors, including a sharp decline in foreign-branded smartphone sales.
According to data released on Friday by the China Academy of Information and Communications Technology (CAICT), shipments of foreign-brand smartphones, including Apple’s iPhone, plummeted by 47.4% in November compared to the same month last year. The figures highlight the growing challenges faced by international companies in a market that has traditionally been one of their key revenue drivers.
Foreign smartphone shipments fell to 3.04 million units in November, down from 5.77 million in the same period in 2023. This stark drop underscores the mounting pressure on foreign brands as they contend with both an economic slowdown in China and fierce competition from domestic giants like Huawei, Xiaomi, and Oppo.
The data reflects a broader trend of declining consumer demand, which has been exacerbated by ongoing economic challenges in China. The country’s slowing growth, ongoing geopolitical tensions, and a shift in consumer preferences toward domestic brands have all played a role in the downturn. Domestic smartphone makers have benefited from state-backed initiatives aimed at promoting homegrown technologies, such as the rapid rise of Huawei, which has capitalized on a patriotic shift among consumers eager to support Chinese products.
For Apple, the situation in China is particularly concerning. While the company remains the leading foreign smartphone brand, its market share is shrinking as local competitors innovate at a faster pace. Huawei, which has reasserted itself as a dominant player with its advanced technology and a patriotic appeal, is a formidable rival.
The latest data serves as a reminder that Apple’s strategy of reliance on China for growth faces increasing risks as the competitive landscape and economic environment evolve. As Apple seeks to regain momentum, its ability to navigate these challenges will be crucial to maintaining its position in the market.
