Apple's, $AAPL, iPhone shipments in China fell about 33% in February from a year earlier, per Bloomberg.
Government data revealed that foreign smartphone brands shipped approximately 2.4 million units last month, a decrease attributed to the later timing of the Lunar New Year. Apple dominates these shipments, being the only overseas player with a significant market share. This decline in February marks the second consecutive month of lower shipments. In January, Apple shipped around 5.5 million units, representing a 39% decrease compared to the previous year, according to figures from the China Academy of Information and Communications Technology.
Apple's stock fell less than 1% in New York on Tuesday morning, bringing its year-to-date decline to about 12%, which sets Apple apart from other major tech companies.
Since the launch of its latest generation models in September, Apple, headquartered in Cupertino, California, has faced challenges in the world's largest smartphone market. The resurgence of Huawei Technologies Co. as a strong competitor in the premium phone segment has taken market share from Apple. Additionally, the slowdown in iPhone sales prompted Apple to offer rare discounts in January.
"Apple's retail channels in China are still working through the shipments from the fourth quarter of 2023, which could explain the recent drop," said Nicole Peng, an analyst at Canalys. "However, it indicates a slowing trend for Apple in China in the coming months, especially as Chinese competitors aggressively promote their AI smartphone features."
An Apple spokesperson did not immediately respond to a request for comment.
The overall Chinese smartphone market also contracted by nearly a third in February, indicating a broader consumer reluctance to spend on non-essential items. Analysts anticipate growth throughout the year but expect iPhone sales to continue declining. Jefferies analysts, led by Edison Lee, stated in a recent note that they expect the iPhone to lead market declines, with a decline of more than 20% so far this year.
