In the final quarter of 2023, Apple's (NASDAQ:AAPL) smartphone shipments in China declined by 2.1%, as per data from research firm IDC, citing increased competition from local rivals led by Huawei.
The decrease highlights the challenges Apple faces in its third-largest market, where some Chinese companies and government entities restrict the use of Apple devices, akin to U.S. restrictions on Chinese apps for security reasons.
Despite Huawei's earlier struggles due to U.S. sanctions, the company staged a comeback in 2023, with a 36.2% increase in shipments, making it the fourth-largest smartphone vendor in China.
However, for the full year, Apple surpassed Vivo to become the top smartphone seller in China, capturing a 17.3% market share, although analysts anticipate increased pressure on Apple's sales in the coming year.
IDC attributes Apple's declining high-end market share in China to competition from rival products and limited product upgrades, reducing the overall appeal of iPhones.
Earlier this month, Jefferies analysts forecasted a continued double-digit decline in Apple's shipment volumes for 2024, while Huawei is anticipated to strengthen its market presence.
The projection suggests Huawei's global smartphone shipments will increase significantly to around 64 million units in 2024, marking a notable rise from the projected fewer than 35 million units in 2023.
Apple is set to unveil its quarterly results next week. Shares fell 0.5% in premarket trading Thursday.
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