Tech giant company Apple has reportedly won its biggest quarterly market share in China, despite Covid 19 disruptions and the recent economic downturn.
According to Counterpoint research data, Apple accounted for nearly 24 percent of China’s smartphone sales in the last three months of 2022.
Meanwhile, the company saw lower demand for its latest generation of iPhones than it had projected earlier this year.
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The company struggled with supply chain challenges last year after it experienced new sales in China for the first time since early 2020 when China was just hit by the first wave of covid-19. The iPhone maker saw its sales decline the entire year even as it outperformed in Q4 as the most sold brand.
In the first quarter of last year, Apple became the top-selling smartphone brand in China for the first time in six years. It however fell back behind Chinese rivals after suffering more than others from a first-quarter slump in sales. Its sales plunged 23% in the three months to March, compared with the previous quarter.
Chinese homegrown brands such as Vivo, Oppo, and Honor fared better than Apple as their sales were denounced after suffering from iPhone 13’s strong performance in the last quarter of 2021.
Recall that Apple’s largest supplier in China Foxconn stopped building iPhones and other products in Shenzhen China after authorities put the city into a lockdown over the covid-19 outbreak.
Apple’s shipments of its latest lineup of iPhones were temporarily impacted by Covid restrictions in China, which saw its assembly facility in Zhengzhou which normally houses about 200,000 workers operate at a reduced capacity due to covid curbs.
Its iPhone Pro models remained in high demand, but deliveries were challenged by coronavirus lockdowns and worker protests at its Zhengzhou plant in China.
The company further warned in November last year that it expected shipments of iPhone 14 pros to be affected by the covid restrictions that limited production at its factory.
The disruptions in China spurred the Tech giant Apple to seek ways to diversify its production from China as it eyes expansion to India.
On the other hand, the global smartphone market has been hurting from an economic slowdown triggered by rising inflation and interest rates. Consumer spending has plummeted, with the Chinese market recording double-digit drops at several points throughout the year.
The fourth quarter of 2022 marked a significant setback for the global smartphone market, with shipments suffering the largest-ever decline of 18.3% year-on-year (YOY). The total annual number of units shipped for the year reached 1.21 billion, the lowest shipment total since 2013.
IDC figures released earlier this week showed all major brands taking a big step back, with retailers selling through inventory build ups rather than taking on new shipments.
According to a report, the holiday quarter’s decline in smartphone shipments is caused by rising inflation and macroeconomic concerns, which are delaying recovery until the end of 2023.
However, consumers may see more trade-in offers and promotions in 2023 as the market seeks new ways to boost upgrades and sales, particularly high-end models.