Apple Inc.’s AAPL struggles in China are proving a little difficult for Cupertino to overcome, with a noted analyst reporting that iPhone sales in the country have declined year-on-year.

Disappointing Start in 2024

What Happened: Noted Apple analyst Ming-Chi Kuo has revealed that based on his checks, iPhone sales in China are off to a bad start in 2024.

According to Kuo’s latest note, iPhone sales have declined between the beginning of 2024 through the Chinese Lunar New Year, which was on Feb. 10.

Apple’s decision to offer a rare discount on iPhones in China during January has not paid off amidst increasing competition from Huawei Technologies Co.

“iPhone shipments in the Chinese market continued to decline year-on-year. The price cuts at the beginning of the year have limited help to shipments,” Kuo said.

Challenges and Restrictions

Why It Matters: Apple’s rare iPhone discount seems to have failed to enthuse buyers, but that might not be as surprising considering the fact that Chinese government officials have been banned from using iPhones and other foreign-made devices at work.

News of the alleged ban has since led analysts at Jeffries to estimate a decline of up to 30% in iPhone sales in China during 2023.

To make matters worse for Apple, the Chinese government issued an advisory warning about “security incidents” right before the iPhone 15 launch in September, amid escalating economic tensions with the U.S.

While Apple has been caught in the crossfire, Huawei’s resurgence has added to its headaches.

The Chinese government has since expanded the iPhone ban to include additional state firms and provinces. The list includes the Hebei province, which houses the largest iPhone factory in the world.

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