An Apple store in Chengdu, Southwest China's Sichuan Province. Photo: IC

Apple experienced a double-digit year-on-year decline in iPhone sales during China's recently concluded "Double 11" online shopping festival, but its iPhone 16 Pro and iPhone 16 Pro Max were still the best-selling models, according to an industry report released on Wednesday.

The report released by market research organization Counterpoint Research attributed the sharp decline to pressure the US tech giant faces "from an abnormally high number of competitor flagships being launched just before and during the [Chinese] festival sales period."

Industry observers noted that although Apple faces increasingly fierce competition, the Chinese market remains one of its most important overseas markets, as the tech giant's latest quarterly financial report ending September showed that apart from its home market in the US, China is Apple's second-largest overseas market, contributing nearly 16 percent of its net sales, just behind the entire European bloc.

To capitalize on one of the biggest sales festivals of the year, major Chinese smartphone makers, with the exception of Huawei, launched their latest flagship models ahead of the festival. Last year, only Xiaomi introduced its flagship model beforehand, the report said.

On October 24, OPPO launched its Find X8 series and ecosystem products. OPPO's sales increased 6 percent year-on-year during the "Double 11" shopping festival, mainly driven by the affordable A series, Reno 12 and the newly launched Find X8 series. Huawei stood out with the most impressive growth of 7 percent year-on-year, the report showed.

Despite the sales decline, Apple's iPhone 16 Pro and iPhone 16 Pro Max were still the best-selling models during the two-week festival, the report showed.

Overall, smartphone sales in China dropped by 9 percent during the "Double 11" shopping festival this year compared with the same period last year, according to the report. 

Chinese domestic brands have firmly established themselves as strong competitors. While Apple has made some progress in recent years, it has primarily focused on incremental updates, especially when compared with the rapid advancements of other leading Chinese brands, Liu Dingding, a veteran industry observer, told the Global Times on Thursday. 

Chinese consumers have become more diverse in their preferences for high-end smartphones, likely leading to a further decline in Apple's market share in the future. While iPhone may still lead in the premium segment currently, it no longer dominates as it once did and Chinese brands are quickly catching up, Liu said.

"However, the Chinese market remains important for the US tech firm, as it contributes billions of dollars in sales each year," Liu noted.

Apple's CEO Tim Cook visited China just a month ago. During a meeting with China's industry and information technology minister Jin Zhuanglong in Beijing, Cook pledged to continue expanding investment in the Chinese market.

Apple is willing to actively seize the opportunities presented by China's opening-up, continue to expand its investment in China and contribute to the high-quality development of industrial supply chains, Cook said.