2 May 2024

Apple needs China more than China needs Apple

SCOTT FOSTER

Apple has slipped to fifth place in China’s cellphone sales ranking, outsold by local rivals Huawei, OPPO, Honor and vivo.

Chinese cellphones are closing the performance gap with Apple’s iPhone while US government harassment of Chinese tech companies has made buying local a source of national pride for some.

Chinese authorities have also imposed local restrictions on Apple, including bans on using iPhones at certain state agencies and state-linked companies in at least eight provinces due to security concerns.

Since last December, employees at the said agencies and firms, including in prosperous coastal regions, have been encouraged instead to purchase and bring local cellphone brands to work. Earlier this month, Chinese regulators ordered Apple to stop carrying Meta’s WhatsApp messaging service and Threads social media platform from its China app store.

The impact of those bans on Apple’s declining local sales is difficult to disaggregate. Apple has slipped in local rankings despite using more, not fewer, Chinese suppliers and Apple CEO Tim Cook’s frequent visits to China to tout his company’s commitment to China’s market.

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