Title: Apple’s iPhone 15 Sales Surge in China Despite Market Concerns
Date: [Current Date]
The latest release of Apple’s flagship smartphone, the iPhone 15, has witnessed strong demand in China, defying concerns of dampened sales due to rising nationalistic sentiments. On Friday morning, hundreds of people crowded a flagship Apple store in downtown Beijing to be among the first to get their hands on the new device.
According to the JD’s Dada one-hour delivery app, iPhone 15 sales surged by an impressive 253% compared to the iPhone 14 last year. As of 10 a.m. Beijing time on Friday, the app reported a significant uptick in sales, indicating robust demand for the latest iPhone model.
Notably, in the first 10 minutes after deliveries began at 8 a.m., 25,000 iPhones were already en route to customers. JD’s Dada app has expanded its collaboration with Apple, working with 4,600 authorized retailers in China, a significant increase from the previous year.
The iPhone 15, which started delivering on Friday following pre-orders that began on September 15, arrives at a crucial time for Apple as it faces economic and political challenges in its third-largest market. Despite these headwinds, Chinese consumers have shown great enthusiasm for the new device.
Interestingly, Huawei’s recent launch of the Mate 60 Pro, featuring a 5G-capable chip from SMIC, has not deterred consumers from flocking to Apple’s latest offering. One customer, who had initially planned to purchase Huawei’s new phone, switched to the iPhone 15 after failing to secure the Mate 60 due to its quick sell-out.
“I don’t feel it’s patriotic to get one brand or another. Don’t Huawei and Apple both pay taxes to China? Apple probably pays more,” said a customer named Zhao, voicing his apathy towards brand loyalty.
The initial sales figures and strong pre-order demand indicate that Apple’s sales in China continue to exhibit resilience. Although Counterpoint Research predicts a 4% year-on-year decline in Apple shipments for the fourth quarter, the current trend suggests otherwise.
Will Wong, a senior researcher at IDC, expects Apple’s overall shipments in China to grow by 5%-6% year-on-year in the second half of this year. Despite challenges such as increasing competition from Huawei’s new devices and a lack of social media buzz, Apple remains optimistic about its market performance in China.
It is worth noting that orders for the iPhone 15 have not been limited to major cities but have also seen a surge in less developed regions across China, with a six-fold increase compared to last year, according to Dada.
China constitutes nearly 20% of Apple’s revenue, and despite the prevailing economic slowdown, the company’s net sales in Greater China rose by nearly 8% year-on-year to $15.76 billion in the second quarter. Apple continues to navigate a highly competitive market as it faces challenges from domestic rivals.
As the iPhone 15 continues to attract eager customers in China, the overall forecast for Apple’s sales remains positive, with strong demand expected from existing iPhone users looking to upgrade their devices. The final sales figures will clarify the extent of Apple’s success in the Chinese market this year.
While concerns about supply constraints have arisen, especially for the Pro series, Apple’s ability to attract consumers in the $600-plus price category and the loyalty of its existing user base are expected to contribute to its continued success.
Disclaimer: This article includes the contributions of CNBC reporters Evelyn Cheng, Eunice Yoon, and information from various sources such as JD’s Dada app, Counterpoint Research, and IDC.