Apple has reported a significant rebound in its position in the Chinese smartphone market, reclaiming the top spot in May. This article examines the factors contributing to this success, including price reductions and the expansion of production in India.
Growth of iPhone Shipments in China
According to data from Counterpoint Research, global iPhone shipments rose by 15% year-over-year during April and May 2023, marking the strongest two-month performance for Apple since the peak of the COVID-19 pandemic. An important factor in this growth has been aggressive price cuts on flagship models, which allowed Apple to compete better against local manufacturers like Huawei and Xiaomi.
Expansion of Production in India
Apple is gradually shifting part of its production from China to India. Between March and May 2023, its manufacturing partner Foxconn exported $3.2 billion worth of goods from India, with 97% heading to the U.S. Exports from India this year have already surpassed the total for all of 2024, crossing $4.4 billion. By the end of 2025, iPhones made in India could account for 30% of global shipments.
Trade Tensions and Company's Strategy
Amid unresolved trade tensions between the U.S. and China, Apple is developing strategies to mitigate the impact of tariffs. The company is utilizing chartered flights to expedite shipments and is lobbying for faster customs clearance in India. Analysts warn that Apple's future is closely linked to its performance in the U.S. and China, where it faces increasing scrutiny and criticism from the government.
Apple continues to demonstrate strong results in the Chinese market while its production in India grows. However, the company must consider external factors, including trade wars and domestic politics in the U.S.