Apple's Market Share Erodes on Double 11

Apple's Smartphone Activation Share Declines for Two Consecutive Years on Double 11

Apple typically releases new iPhones in September each year and leverages the Double 11 shopping festival to achieve significant sales growth. However, the latest market data shows that Apple's smartphone activation share during Double 11 has declined for two consecutive years, and has also experienced a significant month-on-month decrease.

Specifically, within the most recent statistical period (W44), Apple's smartphone activation share in the Chinese market was only 16%, a significant drop compared to 32% in 2022 and 24% in 2023. Since the start of this year's Double 11 campaign, Apple's smartphone activation share has declined week by week, although it recently reached a peak of approximately 26%, similar to last year, but the decline rate was faster. This trend has been described as a "significant month-on-month decline, and an even more significant year-on-year drop."

From a financial perspective, Apple's performance in the domestic market is also concerning. Apple's fourth-quarter 2024 financial report shows that revenue for the quarter reached $94.93 billion, a year-on-year increase of 6%, but net profit declined by 36% to only $14.736 billion. By region, Greater China was the only market where Apple's revenue declined year-on-year, with revenue for the quarter reaching $15.033 billion, falling short of analyst expectations.

Despite this, Apple still had some bright spots during Double 11. Within just 5 minutes of the start of the Tmall Double 11 event, Apple achieved a transaction volume of over 1 billion yuan.

Key points from the article:

• Apple's smartphone activation share in China during Double 11 has been declining for two consecutive years.
• Apple's overall revenue in China has also declined.
• Despite the decline, Apple still managed to achieve significant sales in the initial stages of Double 11.
• The decline in Apple's market share could be attributed to increased competition from domestic smartphone brands.

Possible reasons for the decline:

• Increased competition from domestic brands: Chinese smartphone brands have been making significant advancements in terms of technology and features, offering more competitive pricing and tailored products for the Chinese market.
• Economic slowdown: The Chinese economy has been experiencing a slowdown in recent years, which may have affected consumer spending on high-end smartphones.
• Saturation of the smartphone market: The smartphone market in China has become increasingly saturated, with consumers holding onto their devices for longer periods and being less likely to upgrade.