Source: Finance Association
① In February of this year, Apple's iPhone shipped about 2.4 million units in China, which is 33% lower than the same period last year; ② US stocks closed down 0.7% on Tuesday (March 26) due to this data; ③ Analysts believe that Apple's sales volume in China will gradually slow down in the next few months.
$Apple (AAPL.US)$China, its largest overseas market, is still in a difficult period.
According to media reports, in February of this year, the tech giant shipped about 2.4 million iPhones in China. This is a 33% drop from last year, continuing the downward trend in shipments that began this year. In January, Apple's shipment volume in China was estimated at 5.5 million units, a decrease of 39% over the previous year.
Although February wasn't as bad as January, it still fell short of expectations.
Counterpoint Research estimates in a report released in early March that iPhone sales in China fell by 24% in the first six weeks of this year. However, the actual rate of decline was faster than estimated in the above report, causing investors to worry about Apple's sales performance in the Chinese market.
Perhaps due to this data, Apple's US stock closed down 0.67% on Tuesday (March 26). So far this year, Apple has fallen by about 12%.
Wade Bush's tech analyst Dan Ives wrote in a recent report, “Apple has been through a very difficult period in China.”
Slowing down trend
One of the problems Apple faces in China is intense competition from Huawei. According to Counterpoint's data, Huawei has replaced the iPhone as the number one smartphone in China.
Nicole Peng, an analyst at market analysis agency Canalys, said, “Apple's retail channels in China are still digesting shipments in the fourth quarter of 2023. This may be the reason for the decline in shipments in recent months. This also indicates that Apple's sales in China will slow down in the next few months.”
In its latest quarterly earnings report ending December 2023, the company's sales in Greater China fell to US$20.8 billion, down 13% year over year.
Jefferies analyst Edison Lee said in a report this week that they expect iPhone sales to drop by more than 20% this year, leading the overall decline in the market.
In addition to the headwinds it faces in Greater China, Apple also faced multiple challenges in 2024, including the European Union's nearly $2 billion antitrust fine, the US Department of Justice's antitrust lawsuit, the rapid development of artificial intelligence technology, and the decision to terminate autonomous vehicle projects.
Outsiders are currently paying close attention to Apple's next steps. Perhaps the Global Developers Conference to be held in June will bring some new information.
Apple announced on its official website that it will host the global developer conference “WWDC24” online from June 10 to 14, 2024 Pacific time. This conference will focus on the latest developments in iOS, iPadOS, macOS, watchOS, tvOS, and VisionOS.
And Apple executives seem to be trying to revive their momentum in China. Apple CEO Tim Cook visited China this month, visited Apple's newest store in Shanghai, and attended the China Development High-Level Forum in Beijing.
Ives pointed out, “(Cook) The timing of this trip is very important. Essentially speaking, Apple needs China.”
editor/tolk