Foreign smartphone manufacturers, including Apple, are witnessing steep declines in China. November shipments of foreign-branded smartphones dropped to 3.04 million units, marking a sharp 47.4% fall compared to 5.77 million units in November 2023. This marks the fourth consecutive month of declining sales for non-domestic players, with October seeing a 44.25% year-on-year dip.
Chinese Consumers Prefer Local Brands
The decline in foreign brand sales highlights a shift in consumer preferences. Chinese buyers increasingly favor local brands over international alternatives. While overall smartphone shipments in China fell by 5.1% year-on-year to 29.61 million units in November, domestic producers have managed to maintain their foothold.
Apple Faces Growing Competition
Although the CAICT data doesn’t specify individual brand performance, Apple’s iPhone is included in the foreign-branded category. Despite these challenges, Apple has shown resilience. Reports indicate the iPhone 16 series performed 20% better during its launch period than the iPhone 15. Still, Apple faces significant challenges in retaining its market share amid stiff competition from local brands.
Adapting to a Changing Market
China has long been a vital market for global smartphone manufacturers. However, with local brands gaining dominance, foreign companies must innovate to stay relevant. Strategies like localized features, competitive pricing, and improved customer engagement could help global brands regain lost ground.
Foreign players must adapt quickly to the evolving demands of the Chinese market to overcome these challenges.
