[ad_1]
The latest iPhone data from China suggests Apple is still struggling in one of its biggest markets.
The tech giant shipped about 2.4 million smartphones in the country in February, according to Bloomberg. This is a 33% decrease compared to the same month in 2023, Bloomberg said, citing data from the China Academy of Information and Communication Technology, a government agency.
And while it’s not as high as in January, when Apple shipped an estimated 5.5 million phones in the country, according to Bloomberg, it still looks worse than recent major reports.
In a report published in early March, Counterpoint Research estimated that iPhone sales in China fell 24% in the first six weeks of this year. The decline, which was slower than recent data from China, raised concerns among investors at the time about Apple’s stability in the country and weighed on the stock price. Shares fell slightly on Tuesday. In 2024, it will fall by more than 11%.
“This is a very difficult time for Apple in China,” Wedbush Securities technology analyst Dan Ives wrote in a recent note.
According to Counterpoint, one of Apple’s problems is fierce competition from local telecom giant Huawei, which has dethroned the iPhone as the country’s No. 1 smartphone. Against the backdrop of high-tech and trade tensions between the US and China, the Chinese government has also banned some government agencies and companies from using iPhones, and the economic slowdown may be causing consumers to cut back on spending.
Canalys analyst Nicole Penn told Bloomberg that an excess inventory of iPhones shipped to China in the final quarter of 2024 could also be to blame.
But today’s news is “This is a sign of a slowing trend for Apple in China in the coming months, especially when Chinese peers are pushing the AI smartphone message very aggressively,” Peng said.
Apple is already having trouble in the country. In its latest quarterly results for the three months to December 2023, sales in Greater China fell to $20.8 billion, a 13% year-on-year decline.
This includes broader challenges in 2024, including a nearly $2 billion fine from the European Union, a Justice Department antitrust lawsuit, struggles with rapidly advancing AI technology, and a decision to end self-driving car projects. I’m waiting.
Now, Apple’s leaders appear to be trying to rebuild bridges at home. Chief Executive Officer Tim Cook visited Apple’s newest store in Shanghai this month to attend the high-profile China Development Forum in Beijing aimed at strengthening ties between the Chinese Communist Party and countries around the world. I’m visiting China.
“The timing of this trip was important,” Ives wrote in the memo. “Essentially, Apple needs China and China needs Apple.”
Apple did not immediately respond to Business Insider’s request for comment before publication.
[ad_2]
Source link
