According to Jefferies analysts, Apple's iPhone sales in China fell by 30% in the first week of 2024, adding to evidence of increased competitive pressures from domestic rivals like Huawei for the U.S. tech giant.

According to a note published on Sunday by the brokerage, the reduction in Apple sales was the key driver of a double-digit dip in China smartphone shipments for the first week. According to the paper, other Android companies and Huawei experienced relatively flat year-over-year growth during this period.

Furthermore, as per the research paper, this drop in Apple sales occurred despite extensive discounting of numerous iPhone models through major Chinese online marketplaces. In the first week of 2024, for example, the iPhone 15 Pro and iPhone 15 Pro Max were reduced by 16% on the e-commerce portal Pinduoduo.

The 30% loss reflects an acceleration from the 3% year-over-year decline the US corporation observed in its third-largest market for all of 2023, according to Jefferies, who added that the brokerage obtained this from its own market tracking. In particular, the 3% fall in 2023 corresponded to a 0.4% decrease in Apple's market share.

According to Jefferies analysts, Apple's fall is primarily due to competitive challenges from Chinese rivals, particularly Huawei, which released its Mate 60 series of phones in August last year.

Requests for response from Apple and Huawei were not immediately returned.

The Mate 60 series is largely seen as Huawei's return to the high-end smartphone market following years of US restrictions that had previously impeded its advancement. According to the report, Huawei's share of the Chinese smartphone market increased by around 6% in the fourth quarter of 2023.

According to Jefferies analysts, Apple will face more competition from domestic rivals throughout 2024. According to their projection, Apple's sales volumes would continue to decline by double digits in 2024, while Huawei is predicted to gain market share.

They expect that Huawei will ship around 64 million smartphones globally in 2024, a significant increase from the estimated less than 35 million supplied in 2023. Following a years-long decline, the Chinese smartphone market is primed for a rebound, according to some analysts, with IDC forecasting undefined year-on-year sales rise in the fourth quarter after ten consecutive quarters of dropping shipments.