Huawei Surpasses Apple: China's Smartphone Market Shifts in Dramatic Turn
- Posted on October 17, 2023
- Technology
- By Arijit Dutta
- 712 Views
In a significant shift in China's smartphone market landscape, Apple's iPhone is no longer the dominant player, as per a recent analysis by Jefferies analysts. The throne of the largest market share now belongs to Huawei, marking a pivotal moment in the tech industry.
Image Source -www.wccftech.com
In a significant shift
in China's smartphone market landscape, Apple's iPhone is no longer the
dominant player, as per a recent analysis by Jefferies analysts. The throne of
the largest market share now belongs to Huawei, marking a pivotal moment in the
tech industry.
China's smartphone market has witnessed remarkable growth year-on-year, primarily attributed to
the remarkable performance of Android devices. Leading the charge in this surge
are Huawei, Xiaomi, and Honor devices. This trio of Android manufacturers has
seen double-digit growth, highlighting the popularity of their products in the
Chinese market.
On the flip side, Apple's
iPhone has been grappling with a persistent double-digit decline in sales. This
downward trajectory began with the launch of the iPhone 15, further compounded
by subdued volume growth year-on-year. The analysts at Jefferies express
concerns that this trend could have a ripple effect on the global shipments of
the iPhone 15 in 2023.
Jefferies analysts
assert that the weakening demand for iPhones in China may result in
lower-than-anticipated global shipments for the iPhone 15 next year. They
predict that, based on current trends, Huawei will outpace Apple in the near
future.
It is noteworthy that
China is a vital piece of the puzzle for Apple, accounting for nearly
one-fifth, or 19%, of the company's total sales and serving as its most
significant overseas market.
The analysts at
Jefferies have observed that while discounts on iPhones, excluding the iPhone
15 series, have remained relatively stable, the average discount on Android
devices is comparatively modest.
Furthermore, the resale prices of iPhone 15 models have dipped significantly below their official selling prices, signaling weakened demand within China's borders.
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On a parallel front,
analysts at Morgan Stanley have reevaluated their stance on Apple, lowering
their price target from $215 to $210. Their concerns revolve around potential
supply chain challenges, prompting them to adopt a more cautious outlook for
Apple's performance in the December quarter. They have also revised their
iPhone sales expectations for the upcoming quarter, reducing them by 8%.
Morgan Stanley is
keeping a close eye on several key performance indicators for Apple, such as
total revenue, services revenue growth, gross margin, and revenue growth in
China, with a particular emphasis on the guidance for the December quarter. The
report suggests that this guidance will be the decisive factor for Apple's
short-term performance.
Despite these developments, Apple's stock prices remained relatively stable on Monday, indicating that investors are cautiously observing how the tech giant navigates these challenges in the Chinese market.
