According to the latest research data, Apple has become the fastest growing smartphone maker in the Chinese market in the second quarter. Contrary to the pressure of the global economic downturn in the second quarter. Soon, iPhone sales are pretty impressive.
Apple’s iPhone SE at lower prices and the popular iPhone 11, combined with higher consumer discounts, have helped the company boost its performance in this important market, China.
Apple iPhone sales in China are impressive
As Perception Research says Apple’s channel sales in China from April to June were 7.4 million units, an annual increase of 32%. Channel sales refer to the number of iPhones sold to Apple retailers that are closer to actual sales to consumers.
By comparison, Huawei’s channel sales in the quarter were 36.6 million units, an annual increase of 14%. However, Apple’s total sales in China are much lower than those of Huawei.
OPPO, VIVO and Xiaomi are also among the top five in the Chinese market. But sales of these three companies have fallen sharply. And the entire Chinese market has shrunk by 17% in the quarter.
All channels work well
In addition, data from Shanghai CINNO Research showed that iPhone sales in the Chinese market reached 13 million units in the second quarter, an increase of 62% year on year. The company measures retail sales and not channel sales. On a quarterly basis, iPhone sales in the current quarter increased by 225% compared to the first quarter. While benefiting from a lower base, it also underscores the company’s strong recovery in the Chinese market.
Apple sold less than 500,000 iPhones in China in February this year. But since then it has recovered steadily thanks to the iPhone 11.
“The iPhone 11 is still the best-selling model in China and this has been the case since September last year. “This shows that Apple has a strong brand in the eyes of Chinese consumers,” said Counterpoint Research analyst Flora Tang.
Apple will announce its financial results from April to June this Thursday.
Apple also shut down the iPhone significantly in June, boosting iPhone sales. In the second quarter, the second-generation low-cost iPhone SE was ranked among the top three best-selling smartphones in China.
Apple has also shown complete resilience in the service sector. According to Sensor Tower, the App Store gross revenue in the second quarter was $ 4.4 billion, down 4% from $ 4.6 billion in the first quarter. However, it recorded an annual increase of 13%.
China App Store spending typically increases in the first and second quarters of each year. “But this year’s decline in a month is mainly due to the normalization of the ecosystem after the culmination of the new coronavirus epidemic,” said Stephanie Chan.
The iPhone 12 is attracting attention
China launched 5G networks in December last year. Thus, local smartphone manufacturers have released many 5G devices. According to Counterpoint Research, 1/3 of smartphones sold in the Chinese market now support 5G technology, ranking first in the world.
But Apple has not released an iPhone 5G yet. However, many analysts believe that the new device, which could be called the iPhone 12, should support 5G.
“If Apple develops attractive pricing policies, we expect the iPhone 5G to be immediately sought after in China. “Chinese consumers are fully aware of the benefits of 5G and operators are also promoting competitive 5G packages.” Counterpoint Research analyst Fu Lola Tang said.
Wedbush Securities analyst Daniel Ives said in a report released Monday that “Apple demand in China continued to grow in June and the first half of July, despite fluctuations in speed.” And this fall, the iPhone 12 will lead to a huge cycle of depressing demand release in this key market and globally. “
It predicts that China will have 60 million to 70 million iPhones in a window of opportunity for upgrades next year. And Apple will actively promote it at various price points (including iPhone SE and iPhone 12), thus facing the pressure of local competitors to consolidate the existing position under the circumstances. “