How China's iPhone killer has sharpened its knife
Apple's iPhone is facing pressure from resurgent and aggressive local brands in China. The biggest threat it faces is from Huawei Technologies Co which has been in a geopolitical chokehold of the US which had sanctioned it to throttle its sources of cutting-edge technology. But now it seems Huawei has managed to achieve on its own what the US had been preventing it to. A smartphone it released last year had surprised the US, indicating that Huawei was able to spring back from the crippling impact of sanctions.
In the backdrop of these technological and geopolitical tussles, Apple is suddenly losing its base in China. As Huawei, which produces high-end phones that compete with Apple's, manages to continue rapid innovation, Apple's iPhone faces an almost existential threat in China. Some might see its India entry as a counter to the looming threat.
iPhone's China slide
Last year, Huawei began outselling Apple’s new iPhones in China. The new iPhone 15 was selling far worse in China than its predecessor, reflecting, besides a stubbornly weak consumption, the rise of rivals like Huawei.
Sales of Apple’s flagship device were down 4.5% compared with the iPhone 14 over their first 17 days after release, market tracker Counterpoint Research estimated, as reported by Bloomberg News. Jefferies analysts reckoned sales of the iPhone 15 were down by an even sharper double-digit percentage from its predecessor after Huawei outsold Apple overall.
Huawei's outperformance
