Apple is losing its competitiveness in China market

Apple is losing its competitiveness in China market is profiled by BTW Media because published evidence links it to internet infrastructure, governance, operational dependencies, or market visibility.

• Apple’s iPhone shipments in China fell by about a third year-on-year in February this year, official data released on Tuesday showed.
• While Apple remains committed to the Chinese market, the US consumer electronics giant is facing regulatory and competitive headwinds.

Apple’s iPhone shipments in China fell by about one-third in February from a year ago, official data released on Tuesday showed, suggesting that Apple is confronting.

Tim Cook in Shanghai

Apple chief executive Tim Cook visited Shanghai last week. This visit is seen as an effort to improve relations with Chinese consumers, suppliers, and local governments.

While Apple remains committed to the Chinese market, which has a large Apple fan base, the U.S. consumer electronics giant is facing regulatory and competitive headwinds.

There are rumours that some Chinese government agencies and offices have banned the use of iPhones, although the Chinese government denies the existence of such regulations or policies.

China’s official data showed that foreign brands shipped about 2.4 million smartphones in February, which together accounted for a 16.9% share of the Chinese market, a drop of about a third from the previous month.

According to data from the China Academy of Information and Communications Technology, a Chinese government-backed think tank, in January this year, Apple shipped about 5.5 million units, down 39% year-on-year.

Apple’s exports in China have been gradually declining every month since 2024, and some of China’s local brands are catching up with Apple.

Also read: Apple to hold Worldwide Developers Conference from June 10

Worldwide Developers Conference

Apple announced on Tuesday, that the WWDC 2024 event will be a live event on 10 June at Apple Park in Cupertino, California. Artificial intelligence will be a major focus of the event.

Apple is expected to roll out a major software update for all its smart devices and a new AI strategy around the iOS 18 upgrade.

Cooperation with local companies

Meanwhile, Apple is expected to look for local AI partners for the Chinese market to improve its competitiveness as a tech brand in China.

Baidu is rumoured to be Apple’s supplier for AI in China, but the news has not been confirmed.