(Bloomberg) — Apple Inc.’s latest generation of iPhones is struggling in the world’s largest smartphone market, according to Jefferies.
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Sales in China for the four iPhone 14 models in their first 38 days on the market are down 28% compared to the iPhone 13 family of products, down to 33% in the latest data. , according to a memo on Friday led by analyst Edison Lee. The more expensive Pro variant, which proved to be more resilient this year, also lost steam.
The global smartphone market, especially China, has been hit hardest by the fall in consumer spending this year. Samsung Electronics Co., the world’s largest maker of mobile phones, displays and memory, said sluggish mobile phone sales in China have weighed on its components business. China also poses potential challenges for Apple on the supply side. A major iPhone assembly plant in Zhengzhou came under a sudden Covid-19 lockdown this week.
Domestic Chinese brands have already weathered most of the decline in sales with a sharp drop early in the year, according to Jefferies’ previous analysis, but Apple’s lineup has maintained its appeal, with a three- to three-year streak through September. Increased sales by 5.7% in the month.
Apple representatives did not immediately respond to a request for comment.
READ MORE: Declining iPhone sales in China could mean bigger problems for Apple
A significant first few weeks of sales of Apple’s latest generation mobile phones set the tone for the company’s production and pricing plans for the rest of the year. Jeffries said his Singles Day shopping festival discounts on Nov. 11 are deeper and more widely available than last year. Alibaba Group Holding Ltd.’s Tmall shoppers can get his 400 yuan discount on iPhone 14 as the festival approaches.
“The majority of people who bought the iPhone 13 series on Tmall last year may not have received the discount. “Given the attractive price/performance, growing used phone market, and weak consumer sentiment, even a few percentage point price cuts won’t help demand for non-Pro models.”
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