Apple's Sales Struggle in China Amidst Competition

Apple’s sales in China remain a concern for the tech giant, showing a slight drop of less than 1 percent in the last quarter. This decline indicates an ongoing struggle in one of its key markets, even as the company seeks to win over local officials and combat mounting competition.

In the Greater China market, which includes mainland China, Hong Kong, Macau, and Taiwan, Apple’s sales decreased to US$15.03 billion in the three months ending September, down from US$15.08 billion during the same time last year, as reported in its latest financial results. Over the twelve months ending September 28, revenue for this region also fell by 7.7 percent, totaling US$66.95 billion. In contrast, the global outlook appears more favorable, with total sales increasing by 6.1 percent to US$94.9 billion in the same quarter.

This decline continues a troubling trend for Apple; for instance, sales in Greater China dropped 6.5 percent to US$14.7 billion in the second quarter. Apple attributed this downturn mainly to lower sales of its iPhone and iPad products.

The slow sales performance comes as Apple waits for final approval from Beijing to launch its artificial intelligence (AI) services in mainland China. Meanwhile, local brands are moving quickly to fill the gap left by Apple, releasing their own AI-enabled smartphones.

Brands such as Huawei, Xiaomi, and Honor, a spin-off of Huawei, have recently unveiled new flagship smartphones emphasizing their advanced AI features. This growing emphasis on AI technology may pose a significant competitive threat to Apple in the Chinese market.

Apple, China, Sales