iPhone sales in China shrink as US political tensions grow

Demand for Apple's new iPhone 15 lineup is weaker in China than for last year's models, according to analysts.

Sales for the iPhone 15 are down 4.5% in China compared to iPhone 14 sales in the first two weeks after its launch, according to Counterpoint Research. Separately, Bloomberg reported on Monday financial firm Jefferies said iPhone 15 sales dropped by a double-digit percentage following strong customer demand for Huawei's new Mate 60 smartphone line.

Apple (AAPL) shares fell 0.08% following the reports.

The reports come amid a floundering Chinese economy, a struggling housing market, and more competition among higher-end vendors in China, particularly from Chinese device manufacturer Huawei.

"We're seeing a lot of nationalism right now as Chinese consumers who think they've been wronged by the US government and sanctions are gravitating toward the Mate 60 and that is edging into Apple volumes," Jeff Fieldhack, research director at Counterpoint, told CNN.

At the same time, China remains very important to Apple as it is the largest market behind the US. Fieldhack said he doesn't believe Huawei will surpass Apple right now in terms of smartphone sales but expects continued interest in the Mate 60 will continue to "eek" into Apple's numbers.

"Apple made a lot of gains during its launch period last year, where it became number one in China," he said. "Things looked strong but now, with the political tension and competition, that is a reason for concern."