Apple’s iPhone shipments in China dropped by more than 35% in November compared with the same period last year, Reuters reported, citing a report by Credit Suisse.
Why it matters: The November figures are the iPhone’s second consecutive double-digit decline despite Apple’s efforts to lure more Chinese consumers by significantly lowering the price of its newly released iPhone 11 series.
- Apple priced the iPhone 11 at $50 less than the preceding model following a year of heavily discounting older iPhone models in a bid to offset aggressive competition from Chinese competitors such as Huawei and Oppo.
- The overall Chinese smartphone market declined by 1.5% year on year in November, a modest recovery from the 6.7% year-on-year dip in October, according to a report by the China Academy of Information and Communications Technology.
Details: Total iPhone shipments in China in the September-November period dropped 7.4%, said Credit Suisse analyst Matthew Cabral in the report, citing data from China’s Ministry of Industry and Information Technology.
- Total iPhone shipments in China are down 7.4% year on year in the period from September—when iPhone 11 hit the market—through November, according to the report.
- The analyst also said Apple expects more tariffs imposed on its products sold in the US if the 15% tariffs on billions in Chinese-made goods come into effect on Dec. 15.
- However, Apple could avert the duties after US President Donald Trump signed off on an initial trade agreement with China on Thursday, according to Bloomberg.
Context: Apple has had a tough time in China this year. The company’s smartphone shipments in China fell 28% year on year in the third quarter, while unit shipments for Huawei, its biggest rival in China, surged 66% in the same period, according to data from market research firm Canalys.
- Apple held 5.2% of China’s smartphone market share in the third quarter, ranking fifth behind Chinese handset makers Huawei, Vivo, Oppo, and Xiaomi.