According to two analyst studies cited by the Bloomberg news agency, demand for iPhone 15 smartphones in China was significantly lower in the first weeks of sales than for their predecessors. With the decline in interest in Apple devices comes an increasing demand for smartphones from local manufacturer Huawei Technologies.
According to a report by Counterpoint Research, the sales volume of iPhone 15 series smartphones was 4.5% lower than that of iPhone 14 series smartphones in the first 17 days of sales in China. Jefferies experts, in turn, estimate that sales of the iPhone 15 fell by an even larger double-digit percentage compared to its predecessors. At the same time, Huawei has overtaken Apple in total sales in recent weeks, helped by the debut of the Mate 60 Pro series smartphones.
According to Bloomberg, given the lowest demand for Apple smartphones in China in the last decade, as well as recent complaints from owners of the new iPhone 15 Pro about overheating, the two latest analyst reports are a true blow for Apple. If initial expert assessments are correct, this will be one of the worst debuts of new iPhone smartphones in China since around 2018, when local manufacturers Oppo and Vivo became significantly more active on the market.
The main factor behind the low demand for new iPhone smartphones, according to Counterpoint Research, is the Chinese economy itself, which is trying to recover from the COVID-19 pandemic. Experts are confident that in the US demand for the iPhone 15 will grow by double digits in the first nine days of sales compared to 2022 models.
It is also noted that iPhones went on sale in China weeks after Huawei launched the Mate 60 Pro smartphones in the local market. In China, this event was considered a victory over American sanctions, as new Huawei smartphones use an advanced processor developed and launched directly in China. At the same time, weak demand for new iPhones coincided with a Chinese government order banning the use of Apple smartphones by government agencies and state-owned companies.
According to Bloomberg, Apple shares fell 0.8% on the morning of October 16 on the back of the latest reports. Analysts are divided on the long-term impact on iPhone demand in China, the world’s largest smartphone market. Many experts believe that the growing popularity of Huawei smartphones could undermine Apple’s dominance in the high-end market. Counterpoint Research predicts that the Chinese company can ship 5-6 million Mate 60 Pro smartphones by the end of this year and achieve double-digit sales in 2024. According to Jefferies, Huawei smartphones are now selling better than Apple smartphones.
“The trend suggests that the iPhone will lose to Huawei in 2024. We believe weak demand in China will ultimately result in lower-than-expected global iPhone shipments.the analysts concluded.