Apple's iPhone sales performance has increased in China for the first time in two years compared to the same period last year. According to market research firm Counterpoint Research, iPhone sales in China increased by 8% in the second quarter of this year compared to the same period last year. This is the first occurrence since the second quarter of 2023, interpreted as a positive signal for Apple.
The main reason for this sales increase can be attributed to the promotional events conducted by Chinese e-commerce companies in May, where the iPhone 16 model was sold at a discount, and the expansion of trade-in offers for certain models. Counterpoint explained, "Apple's adjustment of iPhone prices in May was very timely, just a week ahead of the start of the '618 shopping festival,' and consumers' reactions were positive." The '618 shopping festival' is a major shopping event involving key online shopping malls in China, which began on May 13 and lasted over a month.
The increase in iPhone sales in China is significant news for Apple. While Apple's stock price has fallen by about 15% this year, the growth in the Chinese market appears to be welcome news for investors. However, local corporations like Huawei still maintain a strong presence in the Chinese smartphone market.
Huawei's smartphone sales performance in the second quarter increased by 12% compared to the same period last year, maintaining the top market share. Ivan Lam, a senior analyst at Counterpoint, said, "Huawei is continuing to push a strategy of replacing older models through new product launches and increasing the loyalty of core users."
The delayed integration of artificial intelligence (AI) features in the iPhone is also identified as a disadvantage in the competition. While Chinese products have already incorporated some AI functionalities, the iPhone is analyzed to be relatively less competitive in this aspect. Therefore, Apple needs to strengthen its strategies tailored to the local market, along with enhancing AI capabilities for sustained growth in China.