BEIJING, Jan 25: Apples smartphone shipments in China shrank 2.1 percent in the final quarter of 2023 from the same year-ago period, hurt by intensifying competition from local rivals led by Huawei, data from research firm IDC showed on Thursday.
The drop underscores the challenges facing the US firm in its third biggest market, as some Chinese companies and government agencies limit employees use of Apple devices, a measure that mirrors US government restrictions on Chinese apps on security grounds.
Earlier this month, Apple offered rare discounts on its iPhones, cutting retail prices by as much as 500 yuan ($70) amid growing competitive pressure.
Huawei, whose smartphone business was decimated by US sanctions, also made a comeback last year with new launches, intensifying competition in the worlds biggest smartphone market that grew just 1.2% in the final quarter of 2023.
Huaweis shipments increased 36.2 percent in the last quarter of the year, the IDC figures showed.
The company became the fourth largest smartphone vendor in China in the period with a 13.9 percent market share, up from 10.3 percent in the same year-ago quarter.
For the full year 2023, however, Apple overtook Vivo to become the top smartphone seller with a 17.3 percent market share, according to IDC.
This marks the first time Apple became the top seller in China, but analysts predict its sales will come under pressure again this year.
IDC said Apples high-end market share in China has been impacted by rival products and limited product upgrades by Apple which reduced the overall attractiveness of iPhones.
It said Apple still attracted demand from many consumers through substantial discounts and promotions carried out through third-party distribution channels. —Reuters
