Apple iPhone shipments in China rise 52% as recovery gains momentum

(Bloomberg) — Apple Inc.’s iPhone enjoyed a rally in China last month, with shipments rising 52% amid a flurry of discounts from retail partners.

Bloomberg’s Most Read

The latest figures from the Chinese Academy of Information and Communications Technology showed an increase in smartphone shipments in the country, of which around 3.5 million units came from foreign brands, according to a Bloomberg calculation. The iPhone accounts for the vast majority of these devices, and its recovery comes after recording growth in March, following sharp declines in the first two months of the year.

Apple and its Chinese resellers have been slashing prices since early 2024, and these deals extend into the sales season that accompanies the country’s June 18 shopping festival. Cupertino, Calif.-based Apple has seen double-digit declines in sales of its latest generation of devices as it loses premium market share to Huawei Technologies Co.

“The growth reflects two things: Apple was gearing up for the 618 online shopping festival, which we could see from the recent price discounts,” said Will Wong, an analyst at IDC who tracks the industry. “Resilient high-end users have shown signs of purchasing better mobile devices to use longer, which in turn will lead to longer replacement cycles.”

April is traditionally a low-volume month for the iPhone maker, so small changes in purchases can result in big swings. Earlier this month, a Bloomberg Intelligence survey of consumers in China showed the iPhone once again being the mobile device of choice and an increase in interest in upgrading to new devices.

“The iPhone’s dwindling market share in China could soon stabilize as our latest research shows Apple’s return as Chinese consumers’ favorite smartphone brand after being replaced by Huawei,” wrote analysts Steven Tseng and Sean Chen.

“We believe the reversal in user interest may be due to the premiumization trend in China,” they wrote. “More than half of respondents say they are willing to spend more than 4,000 yuan ($550) on their next phone, compared to just 33% who currently use premium handsets.”

–With help from Debby Wu.

(Updates with IDC analyst comment)

Bloomberg Businessweek Most Read

©2024 Bloomberg LP