Has China lost its preference for the iPhone?

For many years, apple It dominated China’s high-end smartphone market. Other companies are iPhoneperformance, or its status as a status object in the eyes of wealthy, international shoppers.
But there is growing evidence that for many people in China, the iPhone no longer holds the appeal it once did. The first six weeks of this year are historically the peak season for Chinese shoppers looking for new phones, with iPhone sales down 24% from a year ago, according to Counterpoint Research. smartphone market.

Meanwhile, the sales of one of Apple’s long-time Chinese rivals. huawei, soared 64%. These are difficult times for Apple. This month, Apple he received two regulatory blows. One is his nearly $2 billion fine from the European Union for anticompetitive music streaming practices, and the other is a lawsuit by the U.S. government accusing Apple of violating antitrust laws.
For the past decade, China has been the iPhone’s most important market after the United States, accounting for about 20% of Apple’s sales. The company’s current grip on China could be loosened by a range of factors, including weak consumer spending, increasing pressure from the Chinese government to avoid devices made by U.S. companies, and the resurgence of domestic champion Huawei. .
“Apple’s golden age in China is over,” said Linda Sui, senior director at market research firm Tech Insights. One of the biggest reasons is rising tensions between the United States and China over trade and technology, Sui said. Unless geopolitical stress is significantly reduced, it will be difficult for Apple to maintain its position.
Few U.S. companies have suffered more losses from these heightened tensions than Apple, whose latest device, the iPhone 15, went on sale in September. “Five years ago, Apple had a very strong brand in China. People used to bring tents and wait for the entire period.”For the next product launch, Apple store at night. ,” said Lucas Zhong, an analyst at Shanghai-based market research firm Canalys. “The iPhone 15 launch wasn’t that popular.”
Apple declined to comment. Apple began selling iPhones in China in 2009. The last time it was outclassed by Huawei in 2019, the Trump administration inadvertently extended Apple’s lifeline by restricting U.S. technology companies from doing business with Huawei. But the restrictions also forced Huawei to develop its own wireless chips and operating system.