Sales of foreign-branded smartphones in China, including Apple’s iPhones, fell sharply by 44.25% year-on-year in October, according to the China Academy of Information and Communications Technology (CAICT). The data, released on Wednesday, revealed a steep decline, with foreign smartphone sales dropping to 6.22 million units last month compared to 11.149 million units in October 2022.
Apple, the largest foreign smartphone manufacturer in China, plays a pivotal role in shaping these figures. Despite launching its iPhone 16 models in September, the company faced headwinds. A highly anticipated AI feature tailored for Chinese users has been postponed to next year, and Apple has yet to announce a local AI partner for the Chinese market.
Interestingly, while foreign brands experienced a sharp decline, overall smartphone sales in China grew by 1.8%, reaching 29.67 million units in October, the CAICT data highlighted. This suggests that domestic brands might be capitalizing on the shifting dynamics within China’s competitive smartphone market.
The dramatic drop in foreign smartphone sales in China, particularly for a powerhouse like Apple, highlights the shifting dynamics of consumer preferences in the world’s largest smartphone market. This trend underscores the growing competitiveness of domestic brands, which are not only catching up in quality but are also aligning more closely with local needs, such as AI integration tailored for Chinese users. Apple’s delay in delivering a localized AI feature, combined with the absence of a Chinese AI partner, could be seen as a misstep in a market where innovation and cultural adaptation are key. The slight overall market growth further suggests that consumers are increasingly turning to domestic alternatives, reflecting a blend of national pride and practical preference.
Featured image courtesy of Asharq Al-Awsat
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