Apple's iPhone Shipments in China Fell 33% Last Month

[MacRumors]

Apple's iPhone shipments in China dropped by 33% in February compared to the same month last year, according to governement figures (via Bloomberg).

A report from China's Academy of Information and Communications Technology showed that foreign brands shipped around 2.4 million smartphones last month. Given that Apple is the only overseas vendor with a meaningful market share, the company accounts for the vast majority of those shipments.

The decline in February marks the third consecutive month of lower iPhone shipments. Apple in January shipped some 5.5 million units in China, which is around 39% fewer handsets than the same time last year. In December, the company suffered a 30% year-on-year decline in the country.

Apple appears to be facing an uphill battle to reverse falling iPhone sales in China, with a 24% year-on-year decline in 2023 projected to deepen through 2024. Apple resellers in China have been increasingly dependent on discounts to shift ‌iPhone 15‌ stock. The discounts followed Apple's own rare price reductions on its website ahead of the Lunar New Year holiday in February.

Apple's efforts to counter the slump are also likely to be hampered by China's decision last year to ban iPhones from the offices of multiple government agencies and state companies. China has a huge number of state-owned enterprises in power generation, seaport construction, mining, manufacturing, education, and investment markets.

Apple is also having to contend with strong interest in Huawei's latest home-grown Mate 60 lineup, which was released in September just weeks before the iPhone 15 launched. Huawei's Mate 60 Pro uses a new China-made 7-nanometer processor tailored for the local market, showcasing the kind of advanced semiconductor manufacturing capabilities that US sanctions were originally designed to prevent.

The overall Chinese smartphone market contracted by almost a third in February, according to research firm Canalys. Analysts still predict growth over the course of the year, but expect iPhone 15 sales to keep falling while local rivals continue to aggressively promote AI features in device marketing. CEO Tim Cook visited China earlier this month to Apple's newest store in Shanghai and attend the China Development Forum in Beijing, where he said the country was "critical" to Apple.

Article Link: Apple's iPhone Shipments in China Fell 33% Last Month

 

[wbeasley]

let's face it, the Chinese government would be very happy to not have iPhones there at all.

and they cripple what they can use.

sales will probably continue to drop. All Apple can do is reduce reliance on Chinese labour and assembly and move their business to a more friendly business country.

 

[Account25476]

128GB storage, 60Hz display, ~3400mAh battery capacity still in 2024, you can squeeze costumers for 3-4 years but then they eventually start questioning these specs, people are not stupid.

 

[gleepskip]

I hope slumping sales in China finally wake up Apple's sleepy boardroom.

 

[2540497]

The wheels are coming off Tim Cook’s bus. Time for him to go!

 

[Rradcircless]

In other news, Apple adds "reasons to upgrade" to their website.

 

[MacLawyer]

Part of the reason has to be that reports indicate the Chinese economy is going through a rough patch.

 

[McJobs]

Deleted.

 

[neuropsychguy]

I hope slumping sales in China finally wake up Apple's sleepy boardroom.

And do what? Petition the Chinese government to reverse the ban of them being used in "multiple government agencies and state companies"? Fight against the rising nationalism in China (and in many countries)? Open iOS up more to state control in China? Do something about the deflation and other economic issues facing China? Do something about the IP-related legal challenges in China that often benefit local companies at the expense of foreign companies?

I'm not saying any of these are necessarily the issue, but pinning declining sales on just "the sleepy boardroom" is hugely simplistic. First off, are smartphone sales down across the board in China or is only Apple affected? There might be some phone manufacturers seeing growth but what's the overall market look like in China?

Also, when criticizing, offer constructive comments. What else can Apple's "sleepy boardroom" do? What are your ideas for actionable and realistic steps Apple can do to fix declining sales in China?

 

[hieranonymous]

Apple’s Chinese bubble was always going to burst at some point, just like it burst for American movie studios after the pandemic. American companies need to rely less on China in general.

 

[contacos]

Apple is like Germany if they are not careful. They are riding their wave of success for too long and eventually it will bite them in the ass because they have been "sitting" on their success for too long and did not innovate enough anymore because "it always sold anyway"

 

[DJTaurus]

These news are music to my ears. I really hope that they will continue loosing ground in the biggest worldwide market. Their ecosystem and stability nowadays is not enough….. android premium offerings have become stable, reliable and user friendly too. No reason to pay the Apple tax….. other ecosystems work just fine too. The last 3 years i ve lost even my slight interest on watching their events live…..specs don’t matter anymore too. Apple has become a cash grab brand. Boring and unexciting.

 

[j26]

In other news, Apple adds "reasons to upgrade" to their website.

So from 12 to 15, it's really only been camera upgrades and the dynamic Island?

It's hardly surprising sales are starting to lag, especially when you see some of the stuff being produced for the Chinese market that doesn't even get a global release.

Apple need to pull the finger out...

Edit: ...and usb-c..

 

[citysnaps]

Seems many here are thrilled and with the Chinese government's policy, and happy it's hurting Apple.

And then being overjoyed while taking it out on Cook. And offering zero solutions.

Not surprised at all. Sadly, it's all about more Apple and Cook hate.

 

[wbeasley]

These news are music to my ears. I really hope that they will continue loosing ground in the biggest worldwide market. Their ecosystem and stability nowadays is not enough….. android premium offerings have become stable, reliable and user friendly too. No reason to pay the Apple tax….. other ecosystems work just fine too. The last 3 years i ve lost even my slight interest on watching their events live…..specs don’t matter anymore too. Apple has become a cash grab brand. Boring and unexciting.

and yet here you are commenting... about your lost interest

 

[wbeasley]

Seems many here are thrilled and with the Chinese government's policy, and happy it's hurting Apple.

And being then overjoyed taking it out on Cook. Not surprised at all.

the sites becaome a mecca for AppleHaters and CookHaters lately

 

[gagaliya]

let's face it, the Chinese government would be very happy to not have iPhones there at all.

and they cripple what they can use.

sales will probably continue to drop. All Apple can do is reduce reliance on Chinese labour and assembly and move their business to a more friendly business country.

still better than the US where all Chinese brand phones are outright banned. Chinese Smartphones have been advancing at an insane pace just like their EVs, barring some government workers most users will gravitate toward the best phone and couldn’t give 2 shts if they are iPhone or Huawei / Xiaomi or whatever.

and that’s what’s happening in China, iPhone tech simply aren’t keeping up moving way too slow. All my friends there were long time iPhone users but have all switched to local Chinese brands. i tried one their camera is just better, and they have built in software let you mod photos in many different ways that pretty much everyone uses. On iphone you have to download some third party app like meitu which is slow and lacking to do the same. The native photo app is an absolute joke it has none of the functions.

So one person shows their Chinese phone to another and everyone start switching after trying… better product cheaper price…and Apple eco system lock over there isn’t a thing like US. It’s really a shame US banned Chinese phones over politics it would be great competition to Apple, the Chinese government can steal all my baby and hobby fish photos if they want lol

 

[ppj845]

And do what? Petition the Chinese government to reverse the ban of them being used in "multiple government agencies and state companies"? Fight against the rising nationalism in China (and in many countries)? Open iOS up more to state control in China? Do something about the deflation and other economic issues facing China? Do something about the IP-related legal challenges in China that often benefit local companies at the expense of foreign companies?

What else can Apple's "sleepy boardroom" do? What are your ideas for actionable and realistic steps Apple can do to fix declining sales in China?

Make better product that can compete globally instead of just competing with the also-sleepy Samsung products in the US. These two have gotten so comfortable with their duopoly iPhone didn’t change since iPhone 12 galaxy didn’t change since S21

 

[citysnaps]

the sites becaome a mecca for AppleHaters and CookHaters lately

Sadly, it's been that way for a long time. I remember the thinly veiled sideways and hateful comments about Cook ever since he became CEO.

 

[d5aqoëp]

128GB storage, 60Hz display, ~3400mAh battery capacity still in 2024, you can squeeze costumers for 3-4 years but then they eventually start questioning these specs, people are not stupid.

This is the biggest factor. For similar price, Chinese smartphones from brands like Huwaei, Xiaomi Oppo, Vivo, etc, etc give almost double of those specs.

 

[theinsaneworld]

and yet here you are commenting... about your lost interest

Isn’t it funny how people just need to express their disdain so publicly? Their opinions supposedly are the reasons for Apple’s decline in sales.

They ignore the actual tactics the Chinese government is taking to prop up local brands. They ignore the contracting economy in China, post-COVID. They ignore the overall decline in smartphone sales, not just in China, but globally.

It’s just strange. I like the products and experiences that Apple provides, but my identity isn’t wrapped up in it.

 

[wbeasley]

still better than the US where all Chinese brand phones are outright banned. Chinese Smartphones have been advancing at an insane pace just like their EVs, barring some government workers most users will gravitate toward the best phone and couldn’t give 2 shts if they are iPhone or Huawei / Xiaomi or whatever.

and that’s what’s happening in China, iPhone tech simply aren’t keeping up moving way too slow. All my friends there were long time iPhone users but have all switched to local Chinese brands. i tried one their camera is just better, and they have built in software let you mod photos in many different ways that pretty much everyone uses. On iphone you have to download some third party app like meitu which is slow and lacking to do the same. The native photo app is an absolute joke it has none of the functions.

So one person shows their Chinese phone to another and everyone start switchimy after trying… better product cheaper price…and Apple eco system lock over there isn’t a thing like US. It’s really a shame US banned Chinese phones over politics it would be great competition to Apple, the Chinese government can steal all my baby and hobby fish photos if they want lol

sure your baby and fish photos might not interest them but you website history list or your health history might.

not everyone wants their data shared on the dark web... remember when they threatened to release names of those who had abortions? if you have a chronic disease you might not get a new job if they could find that out too. or insurance.

your Chinese friends might all be buying state sanctioned non iPhones.
nothing like wondering what monitoring is going on and reporting back to some data warehouse.
when the Red Guards turn up and you gift your organs to the highest bidder perhaps that won't have been a wise decision...

i visited mainland China in 1991.
the tour guide quietly told us to be careful in front of the driver who pretended he didnt speak English.

 

[theinsaneworld]

This is the biggest factor. For similar price, Chinese smartphones from brands like Huwaei, Xiaomi Oppo, Vivo, etc, etc give almost double of those specs.

And the Chinese government saying that their government agencies can’t purchase iPhones or the overall sales of smartphones contracting has nothing to do with it?

 

[citysnaps]

Isn’t it funny how people just need to express their disdain so publicly? Their opinions supposedly are the reasons for Apple’s decline in sales.

They ignore the actual tactics the Chinese government is taking to prop up local brands. They ignore the contracting economy in China, post-COVID. They ignore the overall decline in smartphone sales, not just in China, but globally.

It’s just strange. I like the products and experiences that Apple provides, but my identity isn’t wrapped up in it.

Well-said. Many here want Apple to fail. I'm guessing that helps some to feel better.

 

[laptech]

If sales continue to drop then expect price increases in other Apple products because Apple shareholders will still be expecting Apple to make an overall profit every year and they will not allow profits to drop due to bad sales in China.