Apple Singles Day Stumble: In the bustling arena of China’s Singles Day shopping fest, Apple found itself facing headwinds. According to Counterpoint Research, iPhone sales dipped by 4% during the two-week sales bonanza from October 30 to November 12. In contrast, homegrown competitors Huawei and Xiaomi enjoyed robust increases of 66% and 28%, respectively, during the same period.
The pricing game played a part, with Huawei’s Mate 60 starting at 5,499 yuan ($763) and Xiaomi’s Mi 14 at 3,999 yuan ($555), while Apple’s latest iPhone 15 kicks off at 5,999 yuan ($832). The competitive landscape, coupled with intensified rivalry and hefty discounts on Apple’s iPhones from major Chinese e-commerce platforms, created a challenging scenario for Apple.
Curiously, China’s e-commerce bigwigs like Alibaba and JD.com didn’t spill the beans on specific sales figures for the Singles Day festival. However, JD.com did note that the transaction volume for Apple products on its platform surpassed 10 billion yuan ($1.39 billion) during the sales fiesta.
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Despite Apple’s stumble, the broader Chinese smartphone market experienced a 5% YoY uptick in sales during the promotional window, fueled by the stellar performances of Huawei and Xiaomi.
Industry observers foresee a potential turnaround in the Chinese smartphone market, anticipating a YoY sales surge in Q4 after ten quarters of shipment declines. The rivalry among smartphone models heated up before the shopping extravaganza, with significant discounts on Apple’s iPhones adding to the mix.
Apple’s iPhone 15 series, hitting the shelves in late September, grappled with supply chain hiccups that constrained product availability, affecting its overall performance. While Apple has shown improvement, analysts believe that lingering supply chain challenges may still be influencing the company’s dynamics in the market.
In the ever-evolving Chinese smartphone market, where competition is fierce and supply chain intricacies persist, Apple navigates the terrain, striving to maintain its standing in one of the globe’s most significant consumer landscapes.
Our Reader’s Queries
Why Apple sales are declining in China?
According to Jefferies analysts, Apple’s recent decline can be largely attributed to the competition it faces from Chinese rivals, particularly Huawei. The launch of Huawei’s Mate 60 series of phones in August last year has put significant pressure on Apple’s market share.
How volume of Apple sales underperforms Huawei Xiaomi on China’s Singles Day data?
According to a research consultancy, Apple’s smartphone sales dropped by 4% year-on-year during the two-week sales from Oct 30 to Nov 12. In contrast, Huawei and Xiaomi experienced significant growth with 66% and 28% respectively year-on-year increase in units sold during the same period.