Japanese media reports claim that the iPhone 15 is facing tough competition in China, as Huawei’s offensive is fierce and Meta ramps up production.

Japanese Media Outlets Report Tough Challenge for iPhone 15 in China as Huawei's Aggressive Strategy and Meta's Increased Production Ramp Up Competition

【Mobile China News】On October 20th, Mobile China noticed that according to a report from Nikkei China, Apple’s iPhone production in 2023 is expected to reach around 225 million units, the same as in 2022. The iPhone 15, which was released in September, had strong sales in Europe and America, but in China, initial sales were nearly 5% lower than the previous generation. Huawei plans to concentrate production on 10 million units of their new smartphones in 2023. By 2024, the overall scale is expected to double to 60 million units, catching up to Apple.

The report pointed out that the smartphone market is becoming increasingly mature, and innovation in terms of functionality is decreasing. Apple is falling behind in the development of peripheral chips, which is having a significant impact. Although they have pushed forward with their plan to develop their own communication chips, they have encountered setbacks. Some believe that Apple’s technological development in software has stagnated. Apple extended their communication chip procurement contract with U.S. chip giant Qualcomm for an additional 3 years until 2026. Due to the significant design and functional changes involved in switching to proprietary chips, a supplier analysis stated, “significant changes cannot be achieved for at least 3 years.”

The report also pointed out that Huawei is accelerating the production increase of the high-performance smartphone Mate60 Pro. They plan to order components in bulk and start production by ordering 10 million units of this series first within the year. They are currently hurrying to procure components, and component suppliers are expected to complete delivery in November. Although they are not formal orders, suppliers have expressed their determination to achieve the goal of producing 60 million units by 2024.

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The U.S. research company IDC predicts that overall smartphone shipments in 2023 will reach the lowest level in the past 10 years. The final shipment volume of Apple still depends on the situation of the end-of-year and early-year sales battle, but according to the forecast, the impact of the iPhone 15’s launch is not enough to become a catalyst in the market.

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