Apple loses top spot in China as smartphone sales slump
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Counterpoint Research said smartphone sales in China fell 14 percent in the first quarter, as volumes “fell close to the level seen during Q1 2020, affected by severe epidemics”. Report on Thursday.
Its market share in China is now 17.9%, up from 21.7% in the quarter ended December.
A report by Canalys on Friday also showed that Apple has slipped to third place in China, overtaking the market leader, with its first-quarter shipments down 36 percent from the previous quarter. Canalys tracks deliveries from manufacturers to retail stores rather than selling to consumers.
Ivan Lam, a senior analyst at Counterpoint Research, blamed Apple’s decline. The economic slowdown in China has “put money in people’s pockets.”
Lam added that Chinese parent brands – including Vivo, Honor and Oppo – outperformed Apple as their sales increased after being affected by the strong performance of the iPhone 13 in the last quarter of 2021.
Overall, seasonal decline in demand and severe economic uncertainty in the first few months of this year have dragged the market.
“I don’t think Q2 data will improve much, as the ongoing lockdown will continue to affect consumer spending,” Lam told CNN Business.
China’s economy has slowed sharply in recent months. For the first time in more than a year, a retail agreement was reached in March. Unemployment rose to a record 6 percent in 31 major cities.
Meng Meng Zhang, a research analyst at Counterpoint Research, said in a report with Data Release: Significantly affect. “
He expects China’s smartphone demand to remain “weak due to weak consumer sentiment and lack of new inventions to motivate consumers”.
In a earnings call on Thursday, CEO Tim Cook said that the growing Qwide sanctions in China, along with the shortage of silicone in the industry, would affect the company from 4 4 billion to 8 8 billion next quarter.
“Supply chain issues remain a major factor in China and will affect June growth,” said Dan Aves, an analyst at Wedbush Securities.
Earlier this month, Canelles warned that smartphone sellers around the world are facing great uncertainty due to China’s rolling lockdown, Russia-Ukraine war, and the threat of inflation.
– Samantha Murphy Kelly contributed to this report.
