iPhone shipments in China rise 12 percent in March after price cut

Apple’s iPhone shipments to China rose 12 percent in March after the company and its retailers lowered prices, according to data from a research firm affiliated with the Chinese government.

China Academy of Information and Communications Technology (CAICT) data published on Wednesday showed shipments of foreign-branded phones in China rose 12 percent to 3.75 million units in March from 3.35 million a year earlier.

Although the data does not explicitly mention Apple, the company is the dominant foreign phone maker in China’s smartphone-dominated market. This suggests that the increase in foreign-branded phone shipments can be attributed to Apple’s performance.

Apple’s sales surge in March followed discount efforts led by the company and third-party sellers, which offered discounts of up to 10 percent on some iPhone 15 models.

The price cuts appear to have boosted demand and contributed to the company’s growth in the Chinese market. This represents a significant change from the first two months of 2024, when Apple experienced a 37 percent decline in sales, according to Reuters calculations based on CAICT data.

Apple’s smartphone shipments to China declined 19 percent during the first quarter of this year, their worst performance since 2020, according to research firm Counterpoint. The main reason for the decline in Apple’s sales was the launch and successful sale of a high-end smartphone by Huawei in August last year.

Apple reported sales of $16.37 billion (roughly Rs. 1,36,693 crore) in the Greater China region in the fiscal second quarter ended March 30, down 8.1 percent, but above analysts’ expectations of $15.59 billion (roughly Rs. 1,30,180). crore) is higher than expected. Data from Visible Alpha revealed.

© Thomson Reuters 2024