Apple’s Declining iPhone Sales in China Open Doors for Huawei and Xiaomi
Apple’s sales in China have been sluggish due to restrictions on iPhones in sensitive departments, which has opened the doors for local brands like Huawei and Xiaomi to gain a larger market share. The Chinese government banned Apple’s iPhones in government-backed agencies and state companies, resulting in a negative impact on iPhone sales. On the other hand, Huawei and Xiaomi smartphones have experienced increased sales in China.
Reports suggest that Huawei, the Chinese smartphone manufacturer, has witnessed a substantial increase in its market value, reaching $20 billion since June. This growth can be attributed to factors such as low excitement surrounding the latest iPhone models, as well as Huawei’s expansion into electric vehicles and other businesses. Xiaomi, another Chinese smartphone company, recently launched its Xiaomi 14 series in China, featuring a Snapdragon 8 Gen 3 processor. The new series reportedly received a million orders in October 2023.
Chinese smartphone companies are capitalizing on Apple’s declining revenues. Xiaomi’s stock, listed in Hong Kong, has increased by over 60% since June, making it the best performer in the Hang Seng Tech Index. The success of Xiaomi’s 14 series, with one million orders last month, is seen as a remarkable debut second only to the Huawei Mate 60 Pro. Even though Huawei is currently unlisted, investors are still showing interest in buying its shares.
Analysts predict that Xiaomi’s stock will continue to rise, especially with the success of the Xiaomi 14 series. Gokul Hariharan, an analyst at JPMorgan Chase, believes that smartphones and artificial intelligence of things (AIoT) will contribute to Xiaomi’s growth, particularly in the development of their EV (electric vehicle) offerings.
The comeback of Huawei with its Mate 60 Pro has undoubtedly changed the trend and excited smartphone users who are looking for new innovative devices and technologies. Xiaomi’s release of the Xiaomi 14 has further amplified the excitement as it packs the latest Snapdragon chipset, powerful camera quality, and flagship features. In contrast, iPhone sales have declined in the Chinese market, as consumers fail to perceive significant functionality improvements in the new iPhone models.
It is evident that Huawei and Xiaomi are gaining ground in the Chinese smartphone market, thanks to their innovative offerings and the decline in Apple’s iPhone sales. The Chinese government’s restrictions on iPhones in sensitive departments have indirectly benefitted local brands, allowing them to flourish and attract more customers. It remains to be seen how Apple will respond to this changing landscape in China and regain its market share.
Note: This article is generated by OpenAI’s language model. For the latest news and updates on politics, world, sports, entertainment, and lifestyle, please visit our website.