iPhone sales in China surge thanks to gradual economic recovery and price cuts
The demand for iPhones has been on a steady rise in Q2 2020, with sales volume surging ahead by 225% for the quarter thanks to the latest price cuts announced by Apple. China, which is the world’s largest smartphone market, is slowly overcoming economic disruptions that had arisen due to the COVID-19 pandemic.
Q2 saw Apple record iPhone sales breaching the 13-million mark, which was 4 million more than the figures recorded in Q1 2020. The latest data figures were released by CINNO, a research firm based out of Shanghai.
This data was further validated by another report released by Counterpoint Research, in which Apple was confirmed to be the fastest-growing smartphone brand in China for Q2 2020. However, Android smartphone giant Huawei Tech continues to rule the Chinese smartphone market.
Counterpoint’s report added that Apple had grown at a staggering 32% YoY, thanks to the price cuts and overall popularity of the iPhone 11 units in the country. Apple products are usually sold at a heavier premium in Chinese markets, compared to the US. This report also stated that the iPhone SE was one of China’s top 3 best-selling iPhones in Q2 2020.
Apple’s strong performance over the last quarter is great news for the California-based smartphone maker, whose quarterly financial statements are expected to be out by July 30. Q1 2020 saw the iPhone product line account for over 49% of all global sales made by Apple.
Apple’s total sales in Chinese markets amounted to over $9.46B in Q1 2020, which was around $1B less than what it had earned in Q1 2019. Apple is expected to release better financial results for Q2 2020, thanks to global markets emerging out of COVID-19 induced lockdowns.
The Greater China region, which includes the mainland, Taiwan, and Hong Kong, is Apple’s 3rd largest international market, behind Europe and the Americas. A lot of Apple’s parts suppliers and manufacturing partners operate their factories in China.
In Q2 2020, Apple emerged as the 4th biggest smartphone vendor operating in Chinese markets, trumping Xiaomi Corp, as per reports from Counterpoint. The company was only preceded by Oppo, Vivo, and Huawei.
Although the demand for iPhones in China has been on the rise in Q2 2020, smartphone sales in general in China are yet to recover to pre-COVID levels.
CINNO, another research firm, stated that the total amount of smartphone units sold in China hit 94 million in Q2 2020, which was around 90% of the sales figures seen during the same quarter in 2019.
Smartphone sales in the country fell by 22% in Q1 2020, which was the biggest YoY decline ever seen in China, all due to the COVID-19 outbreak.Source