Apple’s business in China is not doing well, as seen from iPhone sales which fell by more than 30% year over year in the first week of January 2024.

This data was released by Jefferies analysts who also said that Apple’s competitors such as Huawei and Xiaomi remained strong with sales that did not decline, as quoted by Tech Viral from Cnbc, Tuesday (9/4/2024).

Jefferies analysts also predict that iPhone sales in China will fall by double digits during 2024. In fact, they also predict that Apple will experience higher revenue pressure this year.

This Jefferies analyst report reinforces other reports which also say that Apple’s business will not be fine in early 2024. As previously reported, Apple shares slipped 4% due to sluggish sales of the iPhone 15, especially in China.

Barclays analyst Tim Long said that not only iPhone sales were sluggish, but also other Apple products. According to him, when the iPhone 16 is released it will not help boost Apple’s sales, because according to him the iPhone 16 will lack a big breakthrough.

The sluggishness of Apple’s business is inversely proportional to Huawei’s cellphone business, whose market share increased by 6% year over year. Meanwhile, Apple’s market share actually fell 4% year over year.

“As we discussed last week, the iPhone market share declining YoY in China is a negative surprise, we believe this cannibalization comes not only from HW (Huawei-ed) but from Xiaomi and others,” said Jefferies analysts in a note to investors. .

This analysis is strengthened by Apple’s insistence on providing discounts for iPhones in China. According to Jefferies analysts, this step was taken by Apple to maintain its market share in China. The products with bigger discounts are a number of iPhone 14 models, while other products that are already discounted also receive bigger price cuts.