Despite an overall declining market, Chinese iPhone sales are still relatively strong. The latest report from SCMP echoes this, stating that Apple's most expensive models have achieved the greatest growth of up to 147%.
A Declining Smartphone Market
According to SCMP, smartphone sales in China have been declining for years, with a recent official government report predicting that shipments in 2022 would fall to the lowest level in a decade.
Counterpoint analyst Zhang Mengmeng pointed out that market saturation, longer waits between upgrades, and budget-conscious consumers are the reasons behind the prolonged downturn.
In the first half of 2022, smartphone shipments in the world's largest market decreased 21.7% on the year to 134 million, according to the China Academy of Information and Communications Technology.
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The Chinese smartphone market has also been badly hit by a combination of supply chain problems, economic uncertainty, and high inflation. These factors led many consumers to reduce spending on discretionary items like new smartphones.
The market was also affected by citywide lockdowns as part of the Chinese government's fight against the spread of COVID-19.
COVID-19 lockdowns have led to many people being unable to work, while others were not allowed to leave their factories.
Thriving iPhone Sales
Even though the smartphone market is facing a lot of uncertainties due to several factors, the iPhone still fared better than most.
While local smartphone brands were struggling, both Apple and Samsung have outperformed the market, with the greatest increases seen in the ultra-premium category of smartphones costing more than $1,000.
In the first quarter of 2022, the ultra-premium category of smartphones saw year-on-year growth of 176%, and Counterpoint Research reported that while Q2 2022 was not that much of an increase in sales, both Samsung and Apple saw three-digit growth of $1,000 in sales.
The $600 premium and $1,000 and above ultra-premium segments recorded increases in Q2 2022.
Apple did well in the $1,000 and above segment, recording a 147% year-on-year increase, while Samsung grew 133% year-on-year, according to 9to5Mac.
Both these brands benefit from Huawei's decline and the sudden shift in purchase trends towards premium smartphones in China.
Samsung has long boosted sales of its flagship models by offering discounts in China, while Apple offered nothing on its official website. Clearly, the ultra-premium category is where tech companies can find most of the growth in sales.
September's launch of the iPhone 14 lineup should further boost Apple's growth in China in the current quarter, especially if rumors of an early launch turn out to be correct.
iPhone 14 Launch
According to The Verge, Apple is planning its Fall Out event on Sept. 7. The tech giant is also expected to launch its long-awaited iPhone 14 lineup.
The tech giant is expected to introduce four models: a 6.1-inch iPhone 14, a 6.7-inch iPhone 14 Max, a 6.1-inch iPhone 14 Pro, and a 6.7 iPhone 14 Pro Max.
Three Apple Watches will also be introduced at the event: Apple Watch Series 8, Apple Watch SE, and a high-end smartwatch for athletes.
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This article is owned by Tech Times
Written by Sophie Webster
