Apple Faces Stiff Competition from Huawei and Xiaomi in China's Singles Day Smartphone Sales

Apple experienced a decline in smartphone sales during China's Singles Day, as data from Counterpoint Research revealed a 4% decrease in units sold compared to the previous year. In contrast, domestic rivals Huawei and Xiaomi reported robust increases of 66% and 28%, respectively, during the same period. These figures marked a significant surge in the overall number of Chinese smartphones sold, growing by 5% year-over-year throughout the two-week sales event from October 30 to November 12.

The Singles Day sales event in China showcased an intriguing trend, with iPhone sales facing a decline while Huawei smartphones saw a significant surge in sales. Despite the competitive pricing of Apple's latest iPhone 15 model, starting at 5,999 yuan ($832), Huawei's Mate 60 smartphones, priced from 5,499 yuan ($763), and Xiaomi's latest Mi 14 smartphone, priced from 3,999 yuan ($555), gained considerable traction in the market.

Retailer JD.com reported surpassing $1.39 billion in Apple product sales during Singles Day, highlighting the significant impact of the event on Apple's sales performance in China. However, China's e-commerce platforms, such as Alibaba and JD.com, did not disclose detailed sales figures for the event, making it challenging to directly compare this year's performance with previous years.

The surge in sales for Huawei and Xiaomi signals increasing competition for Apple in the Chinese smartphone market. Notably, Xiaomi's reported cumulative gross merchandise value of over 22.4 billion yuan during the shopping extravaganza underscores its growing market presence and success during the event.

Interestingly, while Apple's iPhone experienced a 4% drop, Huawei's sales soared by over 90%, indicating a significant rebound for the company, especially with the launch of its Mate 60 Pro. Xiaomi is also intensifying its push into the premium market segment, challenging Apple's stronghold. This strategic pivot has resulted in a 46% rise in Xiaomi's stock value in 2023, signifying its strong performance in the smartphone market.

The competition in China's smartphone market is further intensified by the news of China expanding its prohibition on iPhones in key sectors, indicating growing challenges for Apple. Combined with the recent sales dynamics, this development underscores the increasingly competitive landscape that Apple faces in China.

These critical developments during China's Singles Day sales event shed light on the evolving dynamics of the smartphone market in China, with local brands establishing their ascendancy and posing formidable challenges to Apple's market share and dominance.