Apple iPhone sales tumbled in China in first quarter, research firm says

By Steve Goldstein

Apple iPhone sales tumbled in China during the first quarter, a research firm said Tuesday.

Counterpoint reported that iPhone sales volumes dropped 19%, during a quarter in which smartphone sales in the world's second largest economy grew by 1.5%.

The 19% decline is actually an improvement of sorts on the estimated 24% decline for iPhone sales that Counterpoint estimated for the first six weeks of the year.

Huawei's phone sales surged 70% in the first quarter, helped by the launch of the 5G-capable Mate 60 series. The Counterpoint report said Huawei sales impacted Apple in the premium segment, and also that replacement demand for Apple has been subdued compared to previous years.

"For the second quarter, the possibility of new color options combined with aggressive sales initiatives could bring the brand back into positive territory; and of course, we are waiting to see what its AI features will offer come [Worldwide Developers Conference] in June," said Ivan Lam, a senior research analyst at Counterpoint.

Apple (AAPL) shares rose Monday but have dropped 14% this year, in part on its struggles in China.

-Steve Goldstein

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04-23-24 0520ET

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