The latest iPhone data from China suggests that Apple is experiencing a recovery in sales in the world's largest smartphone market after a sluggish start to the year.
Shipments of foreign-branded smartphones in China increased by 1.425 million units in May to 5.028 million units. This is up from 3.603 million units a year prior, according to Bloomberg, citing new data published Friday from the China Academy of Information and Communications Technology (CAICT), a government body.
In other words, shipments of foreign-branded phones in China jumped nearly 40% in May from a year earlier.
⚡APPLE'S MAY #CHINA IPHONE SHIPMENTS GREW 40% Y/Y, CAICT DATA SHOWED.
— CN Wire (@Sino_Market) June 28, 2024
Domestic Chinese brands shipped 25.30 million phones in May (83.4% of the total), while foreign brands shipped 5.03 million units(+44.1% m/m or +40.1% y/y), with Apple dominating.$AAPL #iPhone
*Corrected… pic.twitter.com/9jm9o8CDEK
Discounting by the world's most valuable company drove the increased sales.
IPhone shipments began bouncing back around March, and leapt more than 50% in April. That's partly because Apple and its Chinese resellers have been cutting prices since the start of 2024, in deals extending into the pivotal June 18 shopping festival. Before that, Apple had endured double-digit declines in sales after losing market share to Huawei Technologies Co. -Bloomberg
CAICT data does not mention Apple iPhones directly, though the company is the dominant foreign phone maker in the world's second-largest economy.
In March, Dan Ives, a technology analyst at Wedbush Securities, told clients, "This has been a very difficult period for Apple in China."
The slowdown in iPhone sales was caused by weak economic growth in China and Huawei, a local telecom giant competing with the iPhone with its new phone lineups.
CEO Tim Cook must innovate and offer discounts if Apple wants to compete against Huawei.
