Apple’s struggles in China are well documented, with Huawei’s resurgence putting additional stress on iPhone shipments in the region. However, these external factors might only be a part of the reason why the technology giant fails to maintain its momentum, as Telegram founder Pavel Durov states that the company’s own strict App Store policies in China are the reason for this decline.
The messaging platform founder states that Apple prioritizing profits over freedom is not a good long-term strategy if it wants to keep selling iPhones in China
Durov mentioned on his official Telegram account that “Apple shot itself in the foot with its centralized ‘walled garden’ app policies,” taking a dig at the trillion-dollar giant for only allowing apps and games to be downloaded and installed using its online platform. Benzinga also reports that Apple has little to no interest in changing these policies, so the iPhone market share in China will continue to dwindle.
Another statement was that Apple prioritizes profits over freedom, which is not an ideal long-term strategy. Despite the Cupertino giant having generated $119.6 billion in revenue in its Q1 2024 financial report, iPhone shipments continued to dwindle, and eventually, Apple lost its top position to Samsung during the same quarter in just a few months. The company shipped 50.1 million units in this period, resulting in a 10 percent decline compared to the Q4 2023 period.
Apple has attempted various strategies to boost product sales in China, including a rare move in which the latest 15 iPhone models were discounted earlier this year to encourage consumers to upgrade. What is even more troubling is that various analysts have predicted that the iPhone 16 range will lack any compelling features compared to the iPhone 15 family, resulting in a 15 percent shipments decline.
Additionally, Huawei’s Pura 70 series is said to take away some of that market share, with the former Chinese giant said to continue its winning streak by announcing the Mate 70 lineup later this year. The newer models are rumored to be the company’s first to house a 5nm chipset, which will likely pique the interest of thousands of Chinese customers. Given that China is paramount for Apple as it is the largest smartphone market by volume, the iPhone 16 range should flaunt some jaw-dropping features to enable the company to regain its lost ground.
About the author: Omar Sohail is a reporter and analyst for Wccftech's mobile section, specializing in the technology and business of the mobile industry. His expertise lies in the intricate hardware supply chain, covering developments in semiconductor manufacturing, chip lithography, and camera sensor technology.
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