Apple's Empire Shaken: The Surprising 2024 Shift In China's Smartphone Market And Huawei's Stunning Comeback – What's Next For Tech Giants?

• In the first six weeks of 2024, iPhone sales in China plummeted by 24%.
• Recently, Apple's stock has fallen by 5%, signaling a possible return to the lower end of its consolidation range.

The initial six weeks of 2024 show a significant 24% decline in iPhone sales in China, a crucial market for Apple Inc AAPL. This drop signals a change in consumer preferences.

A key factor in this shift is the resurgence of local Chinese smartphone companies, particularly Huawei. Despite facing challenges like U.S. sanctions, Huawei has impressively bounced back with its latest release, the Huawei Mate 60.

This unexpected revival has not only surprised the market but also resulted in a striking 64% surge in Huawei's shipments, posing a direct challenge to Apple's position in China.

The success of Huawei's Mate 60 can be linked to various factors. One key aspect is its cutting-edge 5G connectivity, which has caught the attention of the tech-savvy Chinese market. This has notably impacted Apple's market dominance.

The changing landscape of the Chinese smartphone sector is mirrored in Apple's stock performance. Back in July 2023, Apple's stock soared to impressive new heights, nearly hitting the $200 psychological resistance.

However, this peak was soon followed by a sharp 16% drop, prompting the stock to stabilize around the daily 200 simple moving average. Despite a later attempt to surpass its all-time high in December 2023, Apple fell short, leading to a period of consolidation where the stock price fluctuated between approximately $165 and $200.

In recent days, Apple's stock has seen a 5% drop, hinting at a move back to the lower end of its consolidation range. This decline stands out, especially when compared to the broader market. The stock is down by 11% this year, in contrast to the S&P 500, which has risen by 7%.

After the closing bell on Tuesday, March 5, the stock closed at $170.12, trading down by 2.83%.

This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.