According to Jeffries, the more Huawei advances, the more aggressively Apple will defend its market share

Given the obstacles it has had recently in the Chinese market and the growing competition, particularly from Huawei (HW), Apple is expected to adopt a more assertive strategy to maintain its market dominance.

Apple has gained the most from the US sanctions placed on Huawei, increasing the iPhone's market share in China and globally by 8 and 5 percentage points, respectively, between 2019 and 2022.

However, as noted by analysts at Jefferies in a report on Monday, the launch of Huawei's Mate 60 series in the third quarter of 2023 had a discernible effect on the momentum of iPhone sales in China.

In its financial report for the December quarter, Apple revealed a double-digit percentage drop in iPhone sales in Greater China compared to the previous year.

"HW could pose a significant threat to the iPhone in China if it can improve supply capability and offer more alluring features in the upcoming years," experts said.

To maintain its market position, the tech giant offered the iPhone 14 and 14+ models at steep discounts in China in Q4 2023.

In keeping with this, Jefferies predicts that Apple will maintain its strong market position in China by using aggressive pricing methods for models from prior generations.

(Sources: investing.com, reuters.com)