Apple’s China Struggle: Huawei’s Success Signals Shift in Consumer Preference

Despite unprecedented discounts, Apple iPhone sales in China have plummeted due to the “Guochao” trend, which signifies the rise of patriotic consumption.

According to market research firm Counterpoint, quoted by US CNN and Reuters on the 5th, iPhone sales in China have decreased by 24% since 2024 compared to last year. In contrast, sales of Huawei, China’s largest IT company and biggest competitor, surged by 64% during the same period.

Faced with price pressure from local competitors, Apple launched an unusual discount event this month. At the end of last month, Apple began offering subsidies of up to 1,300 yuan (about $180) on iPhone models through Alibaba, China’s largest e-commerce company.

Despite the massive discount event, iPhone sales did not increase significantly, and Apple’s market share in China has further declined. The iPhone’s smartphone market share, which was 19% in January last year, fell to 15% this year. Its ranking in market share also dropped from 2nd to 4th place.

In contrast, with the successful promotion of the “Mate 60” released last August, Huawei saw a 64% increase in sales this year. The Mate 60 (6,999 yuan) is more expensive than the iPhone 15 (5,999 yuan). Counterpoint analyzed, “As the Chinese economy stagnates and trade conflicts with the United States intensify, Chinese customers who used to purchase Apple have been choosing their country’s brand, especially Huawei, as an alternative.” It also stated, “Apple is facing fierce competition from the resurgent Huawei in China and is under price pressure from other Chinese companies such as Vivo and Xiaomi.”