While India has seen multifold jump in smartphones sales during the last few months, including Apple’s iPhones, China has recently seen decline in sales of iPhones as Chinese local players have become a big competition there.
Double digit decline
According to a latest data by Counterpoint Research, Apple saw a double-digit year-on-year (YoY) decline in iPhone sales as it faced pressure from an abnormally high number of competitor flagships being launched just before and during the festival sales period.
According to the report, overall, China’s two-week “Singles’ Day” sales period this year saw sales volumes decline 9 per cent compared to the equivalent period last year.
Subdued market demand
For the decline, there is no one main cause, but multiple causes, said Ivan Lam, Senior Analyst at Counterpoint Research adding that subdued market demand amid economic headwinds weighed down consumer enthusiasm for promotions in China.
“With the increasing emphasis on premiumisation and rationalisation of consumption, sales of entry-to-mid models are declining, leading OEMs to shift their focus away from these segments and toward boosting sales of flagship models. For Apple also, the initial wave of consumer upgrade demand in the high-end segment has been met following the launch, resulting in a higher proportion of new model sales compared to older models,” Lam told businessline.
To capitalise on one of the biggest sales festivals of the year, major Chinese OEMs except Huawei launched their latest flagships ahead of the festival. Last year, only Xiaomi had introduced its flagships beforehand, it said.
Stiff competition
Apple’s sales also declined as it faced pressure from an abnormally high number of competitor flagships being launched just before and during the festival sales period. However, the iPhone 16 Pro and iPhone 16 Pro Max were the best-selling models during the two-week festival.
In India too, strong shipments of the iPhone 15 and iPhone 16 ahead of the festive season have further enhanced Apple’s performance, Counterpoint had said in its third quarter report for the India smartphone market.
Focus on newer iPhones
“Apple closely follows Samsung at the number two spot with a 22 per cent value share. The brand has aggressively expanded into smaller cities, driving significant value growth with an increased focus on newer iPhones. Strong shipments of the iPhone 15 and iPhone 16 ahead of the festive season have further enhanced Apple’s performance,” Prachir Singh, Senior Research Analyst at Counterpoint has said.
As consumers increasingly invest in premium smartphones, Apple has cemented its status as the top choice for premium buyers in India, supported by its aspirational image and expanding footprint, he added.
Riding on such growth in sales in the country, Apple India posted a 23 per cent increase in net profit to ₹2,745.7 crore in the financial year 2023-24 as compared to a net profit of Rs.2,229.6 crore in FY23.
The company posted a 36 per cent rise in its total income also to ₹67,121.6 crore in FY24 from .₹49,321.8 crore in FY23.