- Foreign-branded phone shipments in China saw a significant increase of 1.425 million units in May
- With the highly anticipated 2024 and iPhone 16 set to bring major upgrades, Apple is strategically managing stock and expanding its iOS user base
Apple’s smartphone shipments in China surged by almost 40% in May compared to the previous year, continuing the momentum from April’s rebound.
Data from a research firm affiliated with the Chinese government, as reported by Reuters, revealed that foreign-branded phone shipments in China grew from 3.603 million units to 5.028 million units in May, with Apple likely being a key contributor to this growth despite not being explicitly mentioned by China’s Academy of Information and Communications Technology (CAICT).
Intense Competition
This surge follows a period of tough competition from local rivals like Huawei, prompting Apple to offer price cuts on existing models to maintain sales momentum.
With expectations of a major upgrade cycle in 2024, particularly with the highly anticipated iPhone 16 featuring advanced AI capabilities through iOS18, Apple is strategically adjusting prices to clear stock and attract more users to the iOS ecosystem.
Apple’s recent price reductions, with discounts of up to 2,300 yuan ($316.71) on selected models, aim to entice consumers to upgrade now and potentially again later to access cutting-edge features.
Strategic Pricing for Growth
By offering competitive prices and anticipating strong sales of the iPhone 16, Apple aims to boost user engagement and solidify its position in the Chinese market, especially as Huawei surpasses it to become the country’s second-largest smartphone vendor.
Overall, phone sales in China rose by 16.5% to 30.33 million units in May, indicating a favorable market environment for Apple’s growth strategies.
