Apple reassured investors on Thursday, November 2, that iPhone demand in China remains robust. This statement comes in an effort to address concerns among investors that Apple might be losing ground to Chinese brands, particularly Huawei Technologies.
Apple’s Chief Executive, Tim Cook, confirmed in an interview with Reuters that they achieved a quarterly record for iPhone sales in mainland China during the September quarter. He also mentioned that four out of the top five best-selling smartphones in urban China were iPhones.
Cook noted that Apple had managed to gain market share in China during the July-September period, even though the overall smartphone market in the region had contracted. He expressed optimism that iPhone sales would increase during the holiday quarter.
According to research firm Canalys, overall smartphone sales in China saw a 3 percent decline in the July-September period compared to the previous year. This drop in sales was attributed to consumers buying fewer smartphones due to a slow economic recovery. However, there were indications that the decline was gradually improving.
Chinese company Huawei experienced strong sales growth in the same quarter. Huawei’s Mate 60 Pro phone garnered attention worldwide for its advanced Chinese-made chip, which the company developed despite facing sanctions from the United States.
Apple reported a 2.5 percent overall sales decrease on Thursday. This dip was primarily attributed to reduced sales of Mac computers and iPads.
Throughout the fiscal year 2023, Apple’s sales in China have seen declines in three out of four quarters. A research consultancy, Counterpoint, mentioned that the latest iPhone series had underperformed in China during the launch quarter due to factors like a shorter pre-holiday shopping period and supply mismatches for the Pro Max model. However, there is potential for improvement in the year-ending quarter, particularly with a strong performance expected during the 11.11 sales event.
Overall, Apple remains competitive in the Chinese market, and its strong iPhone sales indicate that it continues to be a major player in the region.
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