Published on October 18, 2023, 8:10 pm
Image source: Fox News
Apple’s latest iPhone, the iPhone 15, is not performing as well as its predecessor in China, according to sales estimates. This highlights the challenges that the tech giant is facing in one of its most important markets. The reports come amidst conflicts between Apple and the United States on one side and China on the other.
According to a recent Bloomberg report, the iPhone 15 series sold around 4.5% fewer units in its first 17 days on sale in China compared to the previous year’s iPhone 14, based on data from market research firm Counterpoint Research. Another analysis by investment bank Jefferies indicates an even steeper double-digit percentage drop in iPhone 15 sales compared to the debut of the iPhone 14.
The weaker demand for the iPhone 15 reflects China’s strained economy and the increasing popularity of domestic smartphone rivals like Huawei. Recently, Huawei launched its flagship Mate 60 Pro, which was highly anticipated. The Mate 60 Pro is powered by Huawei’s own Kirin processor, a significant breakthrough since Huawei faced sanctions that cut off its access to US semiconductor technology.
Buoyed by the success of the Mate 60 Pro, Huawei has outsold Apple overall in recent weeks according to Jefferies’ analysis. This is a blow to Apple, which is already grappling with the weakest global smartphone sales in a decade.
While Counterpoint notes stronger iPhone 15 sales in the United States, the figures from China are concerning for Apple. The last time there was a similar decline in iPhone sales at launch was around 2018 when Chinese brands such as Oppo and Vivo gained momentum with their cheaper yet capable devices.
Huawei’s resurgence could further erode Apple’s dominance in China’s high-end smartphone market. Counterpoint estimates that Huawei could sell between five and six million Mate 60 Pro units this year and potentially reach double-digit millions by 2024. Jefferies analysts have warned that weakening iPhone demand in China may eventually lead to lower global sales.
However, some analysts remain optimistic about Apple’s long-term prospects as China’s economy recovers. Nevertheless, the rocky start for the iPhone 15 highlights the need for Apple to continue innovating to stay competitive, especially as Chinese firms gain capabilities that were once exclusive to Silicon Valley. With nationalist sentiment on the rise, Apple faces challenges such as slower sales and possible government restrictions on iPhone use in China, which it must overcome to reignite growth in this important market.
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Original article posted by Fox News