Apple’s Reassures Investors About Strong iPhone Demand in China
In the face of fierce competition from Huawei and other local smartphone makers, Apple has reassured investors of the strong demand for iPhones in China. The tech giant set a quarterly record for iPhone sales in mainland China during the September quarter, with four out of the top five best-selling smartphones belonging to Apple.
Despite the overall smartphone sales in China dropping by 3% from July to September, Apple remains confident about its holiday quarter sales. Although iPhone sales fell by 6% during the same period, analysts believe that Huawei’s smartphone sales experienced strong growth.
Although Apple’s overall sales in China dipped by 2.5%, the company attributed this decline to tough sales of Mac computers and iPads. This has also been reflected in Apple’s sales performance in China over the past year, with three out of the four quarters in its 2023 fiscal year showing a decline.
However, analysts maintain their optimism about Apple’s demand outlook in China, especially during the fourth quarter. Apple is benefitting from aggressive discounting by major Chinese online retailers ahead of the Singles Day shopping festival, which is encouraging iPhone sales. Apple’s partner vendors in China have been offering significant deals on iPhone 15 models, reducing prices by up to 1,501 yuan ($205.14) below the retail price.
Furthermore, chip supplier Qualcomm’s positive commentary suggests a recovery in the smartphone market, driven by a rebound in China. Despite Huawei’s re-entry into the market, Qualcomm does not expect it to affect its relationship with Chinese smartphone companies.
Apple’s performance in China is crucial for its global success, given the country’s massive consumer market. With strong demand for iPhones and the lucrative holiday season ahead, Apple remains optimistic about its future in the Chinese market.
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