In a surprising turn of events, Apple Inc AAPL has emerged as the leading smartphone brand in China, despite fierce competition from local companies and increasing government restrictions.
What Happened: For the first time, Apple’s iPhone series topped the charts in China’s smartphone market in 2023, as reported by Bloomberg on Thursday. This achievement is particularly noteworthy given the escalating tensions between the U.S. and China, which have led to a series of bans on Apple products in the country.
Despite these challenges, the iPhone secured the highest number of shipments in the fourth quarter of 2023, according to data from market tracker IDC. This success is attributed to strategic discounts and promotions that helped Apple fend off competition from domestic rivals, including Huawei Technologies Co.
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Why It Matters: The recent triumph of Apple in China’s smartphone market is a significant development, especially in the context of the country’s increasing push for technological self-reliance. In December, China’s government and state-backed companies had been actively promoting the use of domestic technologies, including smartphones, over foreign-made devices.
This shift was further underscored by the expansion of the ban on Apple devices to include additional state firms and government departments across several Chinese provinces. This move, which was reported in December, raised concerns about a potential decline in Apple’s sales in China.
Despite the challenges, Apple’s iPhone series has managed to not only maintain its position but also overtake the market. This success could be attributed to Apple’s strategic pricing and promotional efforts, as seen in the recent discounts of up to $70 on its latest iPhone models in China.
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