Apple's iPhone sales in China experienced a downturn in the first quarter of the year as the company faced intense competition from Chinese smartphone manufacturers, particularly Huawei.

According to Counterpoint Research, iPhone sales in the Chinese market fell by 19.1% in the first quarter of the year. Meanwhile, Huawei's smartphone sales jumped by 69.7% during the same period.

The boost in Huawei's sales is partly attributed to the launch of its Mate 60, which includes high-tech chips that support 5G connectivity.

Since 2019, the US has imposed a series of sanctions on Huawei to prevent the company from accessing advanced technology and chips. However, Huawei has made a significant comeback, ranking as the fourth-largest smartphone manufacturer in China and putting pressure on Apple, which holds the third spot, according to Counterpoint Research.

It's worth noting that Chinese smartphone manufacturers Xiaomi and Oppo have integrated Qualcomm's Snapdragon 8 Gen 3 processors, which support AI applications, into their latest devices.

Overall, smartphone sales in China increased by 1.5% in the first quarter compared to a year earlier, marking the second consecutive quarter of sales growth. Counterpoint Research expects low single-digit growth in smartphone sales for the entire year 2024 in China.