Apple’s China iPhone Sales Plunge 19% in First Quarter as Huawei Catches Up [Video]

Apple’s (AAPL) sales of iPhones in China, its biggest overseas market, fell by 19% year-over-year during the March quarter, according to market research firm Counterpoint.

The U.S. company’s market share fell to third from first in China, around the same level as rival Huawei Technologies, while the overall market expanded by 1.5%.

Apple, which reports fiscal second-quarter results in early May, has been struggling in China amid a ban on foreign devices in state-backed firms, as well as Huawei’s release of a phone with the latest microchip despite U.S. sanctions on access to advanced chips.

Apple’s China woes and lack of AI capabilities have been a drag on its stock this year, although analysts are generally bullish on the company, noting pent-up iPhone demand, growth in revenue in its App store, and expected AI announcements in June.

Another boost for the stock could come from the Vision Pro mixed reality headset, which Apple is …