Apple Faces Slower iPhone Sales in China During Q1 2024 as Local Brands Pull Ahead
Apple saw a notable drop in its smartphone sales within China during the first quarter of 2024, dipping by nearly one-fifth. Counterpoint Research, an analytics firm, reports this shift in a quarterly market overview that highlights how the competitive landscape is adjusting in the world’s largest smartphone market. The data point to a turnover that affects both the overall brand share and the performance of global rivals in a region where brands such as Huawei, Oppo, and Vivo are pushing stronger volumes.
During the period, iPhone unit sales in China declined by 19.1%, and Apple’s market share slipped from 19.7% to 15.7%. The numbers place Apple behind Oppo and Vivo in terms of quarterly momentum, as both saw declines of 15.5% and 0.4% respectively. This shift underscores a broader rebalancing in consumer demand, price positioning, and the ongoing impact of competitive promotions in a price-sensitive market. Counterpoint Research notes that these dynamics are unfolding ahead of anticipated new product cycles from major Chinese brands.
The quarter’s standout operator was Huawei, which achieved a remarkable 69.7% growth, signaling a rebound in consumer interest even before the unveiling of Huawei’s Pura 70 series. The launch trajectory suggested the lineup could strengthen Huawei’s domestic foothold, reinforcing the brand’s ability to convert local affinity into higher sales volumes. In addition, Honor posted an 11.5% growth, and Xiaomi logged an 8.6% rise, illustrating that multiple Chinese brands are building momentum through a mix of cost-conscious devices and feature-rich options.
Ethan Qi, deputy director at Counterpoint Research, commented on the market’s recovery trajectory and drew attention to the seasonality that often accompanies the Lunar New Year. He observed a 4.6% quarterly increase in sales relative to the last quarter of 2023, attributing part of this uplift to seasonal discounts that boosted household tech purchases during the festive period. This insight aligns with broader consumer behavior patterns seen in the region, where holidays and micro-promotions can tilt the balance toward value-driven purchases.
Mengmeng Zhang, a senior analyst, pointed to the strengthening position of Chinese brands, noting that new budget-friendly models are resonating with a broad base of customers. The appeal lies in a combination of solid performance, competitive pricing, and the practicality demanded by workers who travel home for holidays, often seeking devices that offer good price-to-performance ratios. This trend suggests that the domestic market is increasingly oriented toward devices that balance affordability with reliable features, a dynamic that can influence pricing and product strategy across the region.
In a cross-industry context, the shift signals a broader transformation in how smartphone brands compete in China. The emphasis on cost efficiency, ecosystem advantages, and localized messaging appears to be translating into meaningful market share changes. Analysts expect continued volatility as brands refine their offerings and respond to evolving consumer preferences, while China’s smartphone market remains sensitive to promotions, channel strategies, and product rollouts that align with春节 (the Spring Festival) marketing activity. This combination of price sensitivity and brand loyalty forms the current battleground for both international players and domestic leaders. (Counterpoint Research)
Overall, the first quarter of 2024 paints a picture of a maturing Chinese smartphone market that is regaining upward momentum from a trough earlier in the year. For investors and industry watchers in North America, the data underscore how regional dynamics—such as pricing strategies, product portfolios, and holiday-driven demand—can influence global brand performance. The narrative also hints at what to watch next: Huawei’s continued product cadence, the reception of the Pura 70 series, and the extent to which other Chinese brands can sustain their momentum through mid-year promotions and refreshed lineups. (Counterpoint Research)