Apple Struggling in China Achieves Double-Digit Sales Growth

Last Year iPhone Shipments Increased by 18.7% Year-on-Year
iPhone Shipments Estimated at a Total of 3.2 Million Units

Customers visiting the Apple Garosugil store in Gangnam-gu, Seoul, on the 25th, the domestic release date of the iPhone 11, are experiencing the iPhone 11. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Han Jinju] Apple has reportedly recovered from difficulties in the Chinese market last year.

On the 9th (local time), according to Bloomberg and CNBC, based on data from the China Ministry of Industry and Information Technology's Institute of Information and Communications Technology and Android device shipment volumes, Apple's iPhone shipments in China increased by 18.7%.

The total number of iPhones Apple shipped in China in 2019 was 3.2 million units, an increase of 500,000 units compared to the previous year. Last year, smartphone shipments in China totaled 389 million units, a 13.7% decrease from the previous year. Apple succeeded in increasing its shipments amid competition with local manufacturers flooding the market with mid-range Android smartphones.

According to Counterpoint Research, Apple's market share in China as of the third quarter of 2019 was 8%. Local companies such as Huawei, which holds a 40% market share, followed by Vivo, Oppo, and Xiaomi, are trailing behind.

When sales in key countries like China began to decline, Apple lowered its revenue forecast for the fourth quarter of 2018 from $89 billion to $84 billion. This was the first time Apple had lowered its revenue forecast. In fact, in the first quarter of 2019, Apple recorded revenue of $13.107 billion in China, a decrease of $5 billion.

Apple CEO Tim Cook said in an interview at the time, "iPhone sales declined by more than 100%, with a significant impact in China, and upgrade demand for iPhones in some advanced markets fell short of expectations," adding, "The trade dispute between the U.S. and China also added additional pressure." He further noted, "The reduction in carrier subsidies and customers opting for battery replacements instead of device replacements also contributed to the sales decline."

To overcome the sales slump, Apple lowered prices and promoted trade-in programs.

Dan Ives, an analyst at Wedbush Securities, explained, "Apple is expected to maintain a stable sales trajectory, supported by 5G technology, upgrade demand, and sales growth in China."

This content was produced with the assistance of AI translation services.