The drop underscores the challenges facing the U.S. firm in
its third biggest market, as some Chinese companies and government agencies
limit employees' use of Apple devices, a measure that mirrors U.S. government
restrictions on Chinese apps on security grounds.
Huawei, whose smartphone business was decimated by U.S.
sanctions, also made a comeback last year with new launches, intensifying
competition in the world's biggest smartphone market that grew just 1.2% in the
final quarter of 2023.
Huawei's shipments increased 36.2% in the last quarter of
the year, the IDC figures showed. The company became the fourth largest
smartphone vendor in China in the period with a 13.9% market share, up from
10.3% in the same year-ago quarter.
For the full year 2023, however, Apple overtook Vivo to
become the top smartphone seller with a 17.3% market share, according to IDC.
This marks the first time Apple became the top seller in China, but analysts
predict its sales will come under pressure again this year.
IDC said Apple's high-end market share in China has been
impacted by rival products and limited product upgrades by Apple which reduced
the overall attractiveness of iPhones.
It said Apple still attracted demand from many consumers
through substantial discounts and promotions carried out through third-party
distribution channels.
Earlier this month, Apple offered rare discounts on its
iPhones, cutting retail prices by as much as 500 yuan ($70) amid growing
competitive pressure.
Jefferies analysts predicted earlier this month that Apple's
shipment volumes would continue declining by double digits in 2024, while
Huawei is seen bolstering its market share.
They estimate Huawei will ship around 64 million smartphones
worldwide in 2024, a significant rise from fewer than 35 million units
projected for 2023.
Overall, shipment volume in China's smartphone market was
73.63 million units in the fourth quarter. For the full year, shipment volume
was 271 million units, down 5%, IDC said.
Apple releases its quarterly results next week.
Reuters
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