Tag: Market share

  • Apple’s iPhone sales decline by 24% in China, while Huawei’s sales surge

    Apple’s iPhone sales decline by 24% in China, while Huawei’s sales surge

    In the first six weeks of 2024, Apple experienced a significant downturn in iPhone sales in China, facing a 24 per cent year-on-year decrease, according to a report by research firm Counterpoint.

    The decline was attributed to heightened competition from local rivals, notably Huawei, which witnessed a remarkable 64 per cent increase in unit sales during the same period.

    Apple, once holding the second position in the Chinese smartphone market in 2023 with a 19 per cent market share, now finds itself in fourth place with a reduced share of 15.7 per cent.

    On the other hand, Huawei climbed to second place, expanding its market share from 9.4 per cent to 16.5 per cent year-over-year.

    Counterpoint’s senior analyst, Mengmeng Zhang, explained the dynamics, stating that Apple faced formidable competition from a resurgent Huawei at the high end while also encountering pricing pressures from domestic brands like OPPO, Vivo, and Xiaomi in the middle segment.

    To counteract the decline, Apple initiated measures such as subsidising certain iPhone models by up to 1,300 yuan ($180.68) through flagship stores on Tmall, Alibaba’s major marketplace platform.

    Earlier, the company had offered discounts of up to 500 yuan on its official sites.

    Huawei’s resurgence in premium smartphone sales was attributed to the successful release of its Mate 60 series in August.

    Overcoming years of challenges posed by US restrictions on key component exports, Huawei managed to reclaim its position in the market.

    Additionally, Honour, the smartphone brand that separated from Huawei in 2020, witnessed a 2 per cent increase in unit sales, making it the only other top-five brand to experience growth in the first six weeks of the year.

    Contrastingly, Chinese brands Vivo, Xiaomi, and Oppo faced declines of 15 per cent, 7 per cent, and 29 per cent, respectively, highlighting the fiercely competitive landscape in the Chinese smartphone market.

    Overall, the report indicates a 7 per cent shrinkage in the country’s smartphone market during this period.

  • Illegal cigarettes capture 50% of market share: Official tobacco sector calls for govt help

    Illegal cigarettes capture 50% of market share: Official tobacco sector calls for govt help

    The tobacco sector that’s officially documented is urgently seeking government support to address the growing issue of smuggled and illicit cigarettes, which now make up over 50 per cent of the local market.

    During a recent briefing on “Current Tobacco Dynamics,” representatives from the Pakistan Tobacco Company (PTC) expressed concern that the market share of these illicit tobacco products could surpass 53 per cent in the next quarter of the fiscal year 2023–24.

    While a 200 per cent increase in excise duty (FED) on cigarettes was implemented, its real impact is expected to become evident in the current fiscal year. Sami Zaman, spokesperson for PTC, highlighted a 44 per cent drop in legitimate cigarette production in June, along with a 28.4 per cent overall sales decrease for the 2022–23 period.

    The implementation of the track-and-trace system has been limited to just two international manufacturers, leaving the rest of the undocumented tobacco sector largely unmonitored. Zaman stressed the need for consistent application across all local manufacturers to prevent tax evasion units from buying untaxed tobacco directly from farmers.

    Zaman also expressed concern about the government’s inability to effectively control the sale of untaxed, health-warning-free smuggled cigarettes. Currently, only multinational companies with track-and-trace systems are under scrutiny.

    According to Brecorder, smuggled cigarettes, due to their tax evasion, remain cheaper, lack mandatory graphic health warnings, and often come in appealing flavours, sometimes even in loose packs. Despite a significant 200 per cent increase in excise duty, the market continues to be flooded with untaxed, affordable cigarettes.

    Due to a shortage of raw tobacco, prices have risen. The growing illicit market is expected to have a significant impact on both legitimate industry volumes and government revenues in the upcoming quarter.

    Despite contributing Rs175 billion during the 2022–23 period (compared to a Rs180 billion target), the tobacco sector’s excise duty collections increased while volumes decreased.

  • Lucky Motor Corporation increases Kia car prices by up to Rs4 lakh

    Lucky Motor Corporation increases Kia car prices by up to Rs4 lakh

    Lucky Motor Corporation Limited (LMCL) has implemented price increases across all Kia car models, with the exception of Picanto Manual, Stonic EX, and Carnival. The company has not provided a specific justification for this price surge.

    It is worth noting that, in contrast to the previous price adjustment, the company has also raised the price of the Picanto. As of July 5, the revised prices for the various models are outlined in the following table:

    Model Old price (Rs) New price (Rs) Hike (Rs)
    Picanto Automatic 3,625,000 3,825,000 200,000
    Stonic EX+ 5,930,000 6,050,000 120,000
    Sportage Alpha 7,050,000 7,300,000 250,000
    Sportage FWD 7,940,000 8,190,000 250,000
    Sportage AWD 8,570,000 8,820,000 250,000
    Sportage Black Edition 9,050,000 9,300,000 250,000
    Sorento FWD 10,400,000 10,800,000 400,000
    Sorento AWD 11,300,000 11,700,000 400,000
    Sorento V6 11,390,000 11,790,000 400,000

    Previously, the company held a notable market share and was mentioned alongside Pakistan’s leading car manufacturers until mid-2022. However, currently, Kia’s car sales have dwindled to merely a few hundred units.

    Although there was a slight increase in sales for the company last month, it was not substantial enough to make a significant impact. Given the prevailing circumstances, it is understandable that all automakers in Pakistan are focused on survival.