Apple posts revenue decline in Chinese market

Apple Inc posted on Friday a Chinese market revenue decline of 2.5 percent in the third quarter, because of sluggish market demand and stronger domestic competition.

Apple emphasized that iPhone sales are still "strong" in China, while analysts and industry insiders warned threats from domestic brands including Huawei.

Apple's business in China, its third largest market, declined 2.5 percent to US$15.1 billion in the period.

In China, iPhone sales are still strong, Chief Executive Tim Cook said in media reports, as "We had four out of the top 5 bestselling smartphones in urban China."

Apple stated revenue decline with decreased sales of Mac computers and iPads, as well as exchange rate fluctuations in the July-September period.

Ti Gong

In the third quarter, China's smartphone sales dropped 6.3 percent to 67 million units, researcher IDC said.

Apple's new iPhone 15 performance is "less-than-expected," while Huawei will generate a "Catfish Effect" on the competitive landscape in the future, thanks to its popular Mate 60 models, IDC said.

Since October, prices of Apple's new iPhone 15 models have plunged on Chinese mainstream online channels. The reasons cited for the surprising decline are: the iPhone's overheating issue, the marketing campaign for the upcoming shopping festival, and competition from Android models, especially Huawei's Mate 60.

Since the release of the Chinese tech giant's Mate 60 Series models in September, Huawei has been the fastest-growing smartphone brand in China.

"The trend suggests iPhone will lose to Huawei in 2024," wrote Jefferies analysts.

Meanwhile, Apple continues expansion in the domestic market, with Cook's visit to China in October, meeting a key supplier and senior government officials.

Apple will open a new Apple Store in Wenzhou, in Zhejiang Province on Saturday, its 56th Apple Store in China.