Apple has reported an 11% decline in iPhone sales in China, raising alarm bells among investors amidst fierce competition from local brands like Huawei and Xiaomi. The company's net sales in Greater China also showed a continuous downward trend over the past few years, indicating a challenging market. CEO Tim Cook attributed much of the sales decline to supply chain inventory changes and underscored the intense competition in China. As Apple's sales struggle, analysts are increasingly questioning the sustainability of its market presence in this crucial region.
During Thursday's earnings call, CEO Tim Cook took the 11% China decline head-on by explaining that "over half of the decline" was driven by changes in "channel inventory."
It's the most competitive market in the world," Cook said, highlighting the struggles Apple faces against local competitors like Huawei and Xiaomi.
Figures from research firm Counterpoint show that in the last three months of 2024, Apple's smartphone sales fell 18.2%, while Huawei's grew by 15.5%.
Logan Purk, senior analyst at Edward Jones, noted that "sales in China were weak and will remain a point of debate for Apple investors."
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