Huawei outsells Apple's new iPhones in China

Apple's iPhone 15 is selling poorly in China compared to its predecessor, reflecting stubbornly weak consumption and competition from Huawei. Sales of Apple's flagship device dropped 4,5% compared to the iPhone 14 in the first 17 days after launch. Sales are estimated to have dropped by a double-digit percentage compared to its predecessor. This comes as Huawei has overtaken Apple in overall sales, driven by the successful launch of the Mate 60 Pro.

The Chinese prefer local names

The reports represent a potential blow to Apple Lossless Audio CODEC (ALAC), while the company is struggling with the weakest demand for smartphones in a decade and reaction to overheating of models. If initial estimates are accurate, it would mark one of the worst iPhone debuts in China since around 2018, when local names like Oppo and Vivo started attracting Asian consumers.

The collapse of iPhone sales in China can mainly be blamed on the economy trying to rebound from the Covid doldrums. Meanwhile, in the US, the iPhone 15 likely saw double-digit growth over 2022 in the first nine days of sales. This definitely takes the pressure off the numbers in China.

However, the iPhone's debut in China came weeks after the launch of the Mate 60 Pro, celebrated as a triumph over US sanctions due to its advanced processor made in China. This also coincided with government order to extend the iPhone ban at government agencies and state-owned companies, highlighting the growing challenges facing Apple in the country.

Will Huawei stop Apple's dominance?

Still, analysts remain divided on the long-term impact on China, the world's largest smartphone arena. Many analysts say that Huawei's growing position may weaken Apple's dominance in the higher market segment.

It is estimated that the Chinese company may sell 5 to 6 million units of the Mate 60 Pro alone this year. Analysts estimate that in 2024 this number may increase to a double-digit value. Huawei has now taken over the top spot in the market from Apple. The trend suggests that the iPhone will lose to Huawei in 2024. It's entirely possible that weak demand in China will ultimately lead to lower-than-expected global iPhone shipments.