China’s annual Singles’ Day shopping festival, known for its staggering sales records, delivered disappointing results for Apple this year. According to Counterpoint Research, iPhone sales fell by double-digit percentages year-over-year in 2024, despite Apple’s rare price cuts on its iPhone 16 lineup.
Traditionally a key driver of smartphone sales, Singles’ Day has been an arena for Apple to showcase its dominance. However, rising competition from Chinese brands and an influx of new flagship releases from competitors have significantly challenged Apple’s position in the market.
Competition Heats Up
Local brands, including Huawei and HONOR, have intensified their efforts to dominate China’s lucrative smartphone market. Huawei, for instance, reported a 7% growth in sales during Singles’ Day, contrasting sharply with Apple’s decline. Counterpoint Research attributed part of Apple’s struggle to the timing of competitor flagship launches, which coincided with or preceded the shopping festival.
A Broader Market Slowdown
Apple’s challenges come amid a broader decline in smartphone sales during this year’s Singles’ Day. Counterpoint Research noted a 9% year-over-year drop in overall smartphone sales, highlighting the industry-wide difficulties in sustaining growth.
Despite these setbacks, Apple remained among 45 brands that contributed to a total of over $138 million in sales reported by Alibaba, one of China’s largest e-commerce platforms. Alibaba even described this year’s event as a record-breaking one in terms of shopper participation.
Looking Ahead
Apple’s efforts to counteract declining sales with price cuts, although unprecedented, have not yet yielded the desired results. The company now faces the challenge of reasserting its competitiveness in a market increasingly dominated by domestic brands.
Singles’ Day 2024 serves as a stark reminder of the evolving dynamics in China’s smartphone market, emphasizing the growing influence of local players and the need for global brands to adapt swiftly to changing consumer preferences.
