Apple Inc.’s iPhone sales in China declined by 24% over the first six weeks of this year, pushing it to fourth among smartphone vendors in the country, according to Counterpoint Research data.
Apple stock fell 2.85% in morning trading.
The Cupertino, California company lost the title of China’s best-selling smartphone maker to Vivo, a Dongguan-based manufacturer that did a better job of targeting the budget segment of the market, according to Counterpoint. Both companies registered declines in sales, however, as the overall market in the country was down 7%, casting doubt over hopes for an imminent rebound.
The iPhone has struggled to replicate its usual success in China, in part because of wider market malaise. To stimulate demand, Apple rolled out rare discounts on its web store in January, and online resellers are now cutting prices by as much as $180.
“Despite a decline in consumer confidence, Huawei’s enhancements in production enabled the company to meet demand for its popular Mate 60 series,” said Counterpoint analyst Ivan Lam. “The previous year period was already quite depressed, but as far as Apple is concerned, there is more wriggle room in the short term. The aggressive promotions before Women’s Day are just one example.”