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

[sw1tcher]

I'm not sure it's fair to compare China's iPhones sales for February 2024 to that of February 2023. Chinese New Year fell on February this year while it fell on January in 2023.

People in China who take the week off to celebrate Chinese New Year tend to travel (such as going back home to visit family) during that time vs shopping for new smartphones (or other big ticket items). That explains why "the overall Chinese smartphone market contracted by almost a third in February" compared to February 2023.

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.

Smartphone sales down, travel and entertainment (and eating out) spending up. A lot.

https://www.reuters.com/markets/asia/chinas-travel-spending-during-lunar-new-year-holidays-beats-pre-covid-levels-2024-02-18/

Tourism revenues in China during the Lunar New Year holidays that ended on Saturday surged by 47.3% year-on-year and surpassed 2019 levels, thanks to a domestic travel boom amid a longer-than-usual break, official data showed on Sunday.

During the holiday, known as the world's largest annual migration, tourist attractions across the country witnessed massive crowds.

Domestic tourism spending jumped by 47.3% to 632.7 billion yuan ($87.96 billion) from the same holiday period in 2023, according to the data by the Ministry of Culture and Tourism.

The number of domestic trips made during this year's holiday grew by 34.3% from a year ago, totalling 474 million.

Don't forget they give out red envelopes with money too. That leaves less disposable income for other things like smartphones.

 

[Shirasaki]

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.

And eventually price iPhone so out of reach (even under instalment), Apple lose customers while shareholders blame why Apple can’t raise their profit margin past $3T but in decline.

Wonder who’s the fault here.

 

[MAlbi]

2024 - The gift that keeps on giving.

Thi

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?

Price drop. If this drop in sales are chinese regulations then target customer base is consisting of government workers that apparently if buying iPhone have money to spend. I say drop prices and target another customer base. Drop prices world wide = increase of sales. I also consider keeping same price level a price drop. Drop that customers will benefit from in the long run. Which would hurt Appl much less imho. 3 or 5 or 8 or 10 years same price, inflation will be the price drop. I say let them have this “crisis”, this is what brings progress.

 

[Rogifan]

The reason Apple fights App Store changes so hard is because services is the only part of their business that is growing and the bulk of services revenues comes from App Store IAP.

 

[2540497]

Apple has become a cash grab brand. Boring and unexciting.

Think you’ve nailed it here.
Used to work when they were the best and led from the top…
The value exchange consumers expect is disappearing leading to an erosion in sales across the world, not just China… and they are cost cutting to maintain profits.

 

[scorpio vega]

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.

The only people who go on and on about that is enthusiasts.

I only upgrade yearly for the cameras. Most of the pro features I don’t care about but I enjoy having and literally the average consumer doesn’t know what their pro max can do.

 

[2540497]

Nice headline. but if you know anything about Chinese calendar, you'll know financial people won't do comparison using Jan and Feb data.

Similar YOY drop in January as well but keep reaching!

https://www.reuters.com/technology/apple-iphone-sales-china-fall-30-first-week-2024-jefferies-2024-01-08/

 

[scorpio vega]

They should get rid of the iPhone pro lineup and have a single flagship phone like they used to for many many years. The only iPhone (if they really want to in two different sales), should actually have upgrades from the year before like that just a name change and hopefully not just messy bugs and no features in the latest iOS.

No. They should continue having a choice between models.

 

[GuruZac]

Not surprised. For a variety of reasons including geopolitical, increased tension between US and China, as well as just not very innovative designs. Apple’s hardware is just not on par in many ways with flagship Android counterparts, and much of the software/AI is lacking. The iPhone has definitely become a stagnant device, still great, but stagnant.

 

[Timo_Existencia]

So ridiculous all you "Apple is Failing!" people. Or the "Apple is stagnant!" people.

The iPhone is currently the best selling smartphone in the world.

This nonsense should be considered spam and removed from the site.

 

[erikkfi]

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?

Not OP but I'll take a crack at it:

• Admit there's a problem with the current roadmap of iPhone updates where one new feature gets introduced per year and then trickles down to the rest of the lineup over years. Putting the 5X zoom only into the Pro Max and then into the Pro this year is borderline cynical.
• Acknowledge that competition is now real in one of your biggest markets. Even if American and European consumers aren't punishing you for dull year-over-year iPhone releases, Chinese ones now clearly are. A 120Hz refresh rate is practically the industry standard now; eliminate "ProMotion" and make that the refresh rate across the iPhone line (you can exempt the SE if you really want to). This also extends to definitely cynical moves like keeping storage amounts low to entice people to pay even more or to sign up for iCloud.

That's all I've got but at least it's something. I think OP's invocation of "boardroom" probably meant fire Tim Cook, and I think that's a bit much. I just think Apple needs to get hungry again. I feel this company uses platform lock-in to ease up on innovation, and now it needs to realize it's not going to be able to get away with that anymore if it cares about the Chinese market.

 

[webkit]

They should get rid of the iPhone pro lineup and have a single flagship phone like they used to for many many years. The only iPhone (if they really want to in two different sales), should actually have upgrades from the year before like that just a name change and hopefully not just messy bugs and no features in the latest iOS.

Just as not everyone is content with a more basic phone, not everyone wants/needs or is willing to pay for features that come with a Pro level phone. Even if streamlining the entire lineup down to one device would allow them to offer a full featured (Pro/Pro Max-level) phone for less than they do now, it would still be higher priced than the current regular 15 and could cut out a meaningful segment of the current customer base.

All of the major smartphone brands give buyers a choice of models/features and prices, including ones with even more models than Apple has. I see no reason why Apple shouldn’t continue to offer multiple device levels just as they've long also done with Macs, iPads, Watches, etc.

 

[Surf Monkey]

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

And being 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.

Every comment that you don’t like you frame as “hate.” It’s getting old. Valid criticisms are not “hate.” It’s offensive that you keep making that claim.

 

[Surf Monkey]

So ridiculous all you "Apple is Failing!" people. Or the "Apple is stagnant!" people.

The iPhone is currently the best selling smartphone in the world.

This nonsense should be considered spam and removed from the site.

Or the opposite since you’re dismissing many valid criticisms in an aggressive and not especially appropriate way.

 

[MilaM]

When you repeat "Apple is doomed" every year, you will be right one day

 

[Surf Monkey]

When you repeat "Apple is doomed" every year, you will be right one day

The argument isn’t “Apple is doomed.” The argument is “Apple can do better.”

 

[I7guy]

The argument isn’t “Apple is doomed.” The argument is “Apple can do better.”

The arm chair CEO’s certainly think so.

 

[citysnaps]

Every comment that you don’t like you frame as “hate.” It’s getting old. Valid criticisms are not “hate.” It’s offensive that you keep making that claim.

You seem to love following me around and taking issue with things I (and others) comment on. It's getting weird.

Simply hit the ignore button and find happiness.

 

[Surf Monkey]

The arm chair CEO’s certainly think so.

Criticism is expected on a forum like this one. The constant moaning by a small contingent about it gets old.

 

[GuruZac]

So ridiculous all you "Apple is Failing!" people. Or the "Apple is stagnant!" people.

The iPhone is currently the best selling smartphone in the world.

This nonsense should be considered spam and removed from the site.

Best selling does not equal innovation. The iPhone is a known quantity, lots of people know how to use it, and so they just get an iPhone to replace their iPhone. It’s a good thing this website allows opinions to be shared without fear of being considered spam.

 

[jlnr]

I say drop prices and target another customer base.

If iPhones and iOS were noticeably better than the competition, then the CCP couldn't afford to block them even for government officials. Nobody likes to be forced to use an inferior product. Apple should not drop the price of the iPhone experience, but increase its quality.

 

[StoneJack]

Well, a largest (sometimes second largest) by market cap company on Earth probably is doing something right if it is valued so high.

 

[I7guy]

Criticism is expected on a forum like this one. The constant moaning by a small contingent about it gets old.

Of course. What is up for debate is what constitutes “valid”.

 

[I7guy]

If iPhones and iOS were noticeably better devices, then the CCP couldn't afford to block them even for government officials. Nobody likes to be forced to use an inferior product. Apple should not drop the price of the iPhone experience, but increase its quality. Make even people who don't have to pay for their (work) devices demand an iPhone.

Funny comment considering the market valuation of apple.

 

[I7guy]

They should get rid of the iPhone pro lineup and have a single flagship phone like they used to for many many years. The only iPhone (if they really want to in two different sales), should actually have upgrades from the year before like that just a name change and hopefully not just messy bugs and no features in the latest iOS.

Even Ford gave up selling their model T in only one color.