- Bad news for Apple: The iPhone has another new competitor in China.
- Huawei has released a new smartphone series called Pura 70.
- The device is giving Chinese consumers another reason to ditch their iPhones.
Tim Cook wants you to think that all is well for Apple in China.
A highlight reel of the Apple CEO’s recent visit to Japan was posted on his Weibo account, showing him being bashed by fans at the opening of a new store in Shanghai’s Jing’an District, taking an iPhone selfie with a celebrity model, and casually taking pictures. He was seen taking pictures. Stroll along the historic Bund.
“Every time I come to China, I am reminded of the unique charm of this place. Thank you so much for the warm welcome!” Cook wrote in a social media post.
That is to say. In fact, Apple’s chief was facing a major dilemma in China when he posted this video last month. According to data from Counterpoint Research, iPhone sales fell by an astonishing 24% in the first six weeks of this year.
And despite Cook’s attractive offensive, there is a risk that the downward spiral will get even worse.
On Thursday, Huawei announced a new series of smartphones called “Pura 70.” It features an advanced new camera system similar to the three lenses on the back of iPhone Pro models, and prices start at $760.
Importantly, the new phones give Huawei a new opportunity to take an even bigger share of China’s smartphone market from Apple. Since the launch of the Mate 60 Pro series last year, it has already attracted some consumers.
The Mate 60 sparked some concern in the U.S. last year when it was discovered that it contained an advanced chip that the U.S. government had tried to block from China by imposing strict export controls.
These chips are domestically produced and have helped Huawei make big profits in China by offering features comparable to the iPhone. These are now believed to be included in the new His Pura 70 devices as well, according to Reuters who spoke to customers who tested the network speeds.
Counterpoint estimated that Huawei’s smartphone sales will surge 64% in the first six weeks of this year. Pura 70 could continue that momentum. Ivan Lam, senior analyst at Counterpoint, told Reuters that Huawei could almost double its mobile phone shipments this year to 60 million.
Of course, this isn’t what Apple wants to hear.
China has been China’s most important international market in recent years, but that is now being threatened by the rise of domestic rivals luring Chinese consumers with devices that look and feel almost identical to the iPhone.
Apple is already showing weakness in competition within China. Net sales in the Greater China region in the last three months of last year were $20.8 billion, down from $23.9 billion in the same period in 2022.
Wedbush analysts wrote last week that Apple is “weaving through one of the most challenging Chinese demand environments we have experienced in the past five years.” They expect iPhone sales in the region to decline again when Apple’s quarterly results are released on May 2nd.
Cook may be putting on a brave face, but if Huawei has its way, iPhone sales in China may continue to decline.
