Apple is facing a major dilemma with sales of their iPhones crashing 19% in China, one of their most important markets.
The fall comes as the market for smartphone sales bounces back with Samsung now the #1 mobile brand in the world.
According to data from an independent research firm Counterpoint who claim that their latest numbers signify the worst performance for Apple since Covid struck in 2020 with the Chinese Government banning government officials and employees at state-owned enterprises from using iPhones.
Yesterday The South Korean Herald revealed that the South Korea’s military is set to introduce a comprehensive ban on iPhones in military buildings due to increasing concerns about possible leaks of sensitive information through voice recordings, according to multiple military sources.
The sources, a group of ranking officers who wished to speak on condition of anonymity, said that the Air Force headquarters released an internal announcement on the military’s intranet server on April 11.
Also impacting Apple decision making, is the questioning of senior Apple management by Government officials in both Europe, and the USA, over their business practises with probes being conducted in several Countries.
In China local brands have pushed Apple into the #3 slot behind Xiaomi, and Honour with Huawei, now stripping share away from Apple in the premium smartphone market.
The fall in Apple’s market share came as the Chinese market grew 1.5%.
According to Bloomberg the weakness in Apple’s iPhone sales is remarkable in part because the first quarter, is when China celebrates the Lunar New Year, and is traditionally a period of significantly increased sales for mobile phone brands.
In the past Samsung has bought forward the launch of a new device to take advantage of Lunar New Year demand.
During the last quarter Huawei climbed almost 70%, underscoring its resurgence in the premium segment that Apple once dominated claim observers.
IDC research reveals that iPhone shipments fell almost 10% in the first three months of 2024, raising concerns about Apple’s ability to sustain growth just as it prepares to report earnings next month.
Last week Apple bowed to the demands of the Communist Chinese Government by removing WhatsApp and Threads from its App Store in China after being ordered to do so by the government who said that it was because of national security concerns.
Two apps Telegram and Signal — were also removed from the app store according to app tracking firms Qimai and AppMagic.
Apple responded claiming “We are obligated to follow the laws in the countries where we operate, even when we disagree,” the statement said.
China remains one of the company’s biggest markets, but business there has grown harder after Beijing escalated a ban on foreign devices in state-backed firms and government agencies.
Consumers are also embracing Huawei’s return to prominence after it debuted a made-in-China chip that US sanctions were meant to prevent.
