Apple faces growing pressure in China as sales of foreign phones plunge

Sales of foreign phone brands in China dropped significantly in November, as per official data, highlighting growing challenges for Apple, the largest international phone maker in the country.

In November, shipments of foreign mobile phones in China totaled 3.04 million units, based on calculations by using data from the China Academy of Information and Communications Technology (CAICT), Caliber.Az reports, citing foreign media.

This marks a 47.4 per cent decline compared to November 2023, and a 51 per cent decrease from October of the same year. Although CAICT doesn't provide detailed breakdowns for specific brands, Apple represents the bulk of foreign mobile phone shipments in China, with rivals such as Samsung capturing only a small share of the market.

The data underscores the increasing challenges Apple faces in the world’s largest smartphone market as it contends with intensifying competition from local brands. For example, Huawei, which had been severely impacted by US sanctions on its handset business, experienced a strong recovery in late 2023. 

The company has aggressively released high-end smartphones in China that have gained significant popularity among local consumers. Huawei's growth has far outpaced Apple in the third quarter of last year, according to the latest research from IDC. Apple is pinning hopes on its iPhone 16 series, launched in September, to regain its foothold in China, promising new artificial intelligence features through its Apple Intelligence software. 

However, Apple Intelligence is not yet available in China due to the country's complex AI regulations. In the meantime, some of Apple's local competitors are already promoting their own AI capabilities, which are available on devices now.

Highlighting the importance of China for the tech giant, Apple CEO Tim Cook visited the country multiple times last year to strengthen partnerships with Chinese firms for Apple Intelligence. To boost interest in the iPhone 16, Apple is planning discounts for the device starting January 4, as part of a Lunar New Year promotion.

Shares in Apple have fallen after reports that Chinese government workers have been banned from using iPhones.

The firm's stock market valuation has fallen by more than 6 per cent, or almost $200 billion.

China is the technology giant's third-largest market, accounting for 18 per cent of its total revenue. Beijing had ordered central government agency officials to not bring iPhones into the office or use them for work.

By Naila Huseynova