Apple CEO Tim Prepare dinner delivers remarks throughout an Apple particular occasion in Cupertino, California, on Sept. 12, 2023.
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Apple’s iPhone gross sales in China have been down greater than 30% year-over-year for the primary week of January, whereas opponents like Xiaomi and Huawei have “remained a lot stronger” with flat gross sales, in keeping with a observe from Jefferies analysts Sunday.
Jefferies analysts mentioned they consider Apple’s iPhone quantity will fall by double digits this yr in China, including that they “anticipate Apple to have even increased income stress in China in 2024.”
The observe from Jefferies analysts Sunday follows Apple’s rocky begin to the yr, as shares slipped on downgrades from Barclays and Piper Sandler, warnings from its provider Foxconn about first quarter income decline and experiences that the U.S. authorities is getting ready an antitrust lawsuit.
Huawei gained probably the most smartphone market share in China in 2023, in keeping with the observe, rising by about 6% yr over yr. In the meantime, Apple’s market share in China has fallen round 4% yr over yr, in keeping with the observe.
“As we highlighted final week, iPhone’s decrease market share YoY in China is a adverse shock, and we consider the cannibalization is coming from not simply HW, but additionally Xiaomi and ‘others,'” the analysts mentioned, referring to Huawei.
Shares of Apple have been down lower than 1% in premarket buying and selling Monday.
The Jefferies analysts mentioned that iPhone reductions in China are on the rise, which is probably going a part of Apple’s effort to “defend its share.” They discovered that reductions for some iPhone 14 fashions rose “considerably” in China final week, whereas some current reductions have been elevated even additional.
Apple didn’t instantly reply to CNBC’s request for remark.
–CNBC’s Michael Bloom contributed to this report.
