Apple has faced a significant setback in the Chinese smartphone market, with its iPhone shipments tumbling 19% in the first quarter of the year—the worst performance since 2020, according to data from research firm Counterpoint. This decline has seen Apple’s market share in China drop to 15.7% from 19.7% a year earlier, placing it almost level with domestic competitor Huawei.
Huawei, once hindered by U.S. sanctions, has made a remarkable comeback with a 70% surge in sales. Its market share has jumped to 15.5% from 9.3% in the same period last year. The company’s resurgence is attributed to the successful launches of its Mate 60 series in August and the recent Pura 70 series, which have bolstered its position in the premium segment.
The shift in market dynamics has also seen Apple lose its crown as the leading smartphone seller in China. Vivo has taken the top spot, while Honor—a brand spun out of Huawei—has secured second place. Analysts note that Huawei’s return has directly impacted Apple’s performance, particularly in the high-end market.
“Huawei’s comeback has directly impacted Apple in the premium segment,” said Ivan Lam, an analyst at Counterpoint. “The replacement demand for Apple has been slightly subdued compared to previous years.”
Apple has responded by launching aggressive sales initiatives, including discounts of up to 1,300 yuan ($180) on certain iPhone models. These efforts aim to entice consumers and are expected to help improve sales figures in the upcoming quarter. “For the second quarter, the possibility of new color options combined with aggressive sales initiatives could bring the brand back into positive territory,” Lam added.
Despite these challenges, the overall smartphone market in China has shown signs of recovery, growing by 1.5% in the first quarter. This marks the second consecutive quarter of positive growth. Analysts from Canadian research firm TechInsights predict that overall smartphone shipments in China this year could top 50 million units, with Huawei potentially capturing a 19% market share, up from 12% in 2023.
Apple is also facing criticism from Chinese consumers and reviewers, who point out issues such as slow charging speeds, overheating, and the lack of local functionalities that are widely available on more affordable domestic competitors. These factors have contributed to the brand’s declining appeal in a market where consumer preferences are rapidly evolving.
Huawei’s resurgence is seen by many as a triumph over previous setbacks due to U.S. sanctions. The successful launch of its Mate 60 series has reestablished the company as a formidable player in the high-end smartphone segment, offering stiff competition to international rivals like Apple.
Reference(s):
iPhone Q1 shipments in China tumble 19%, worst since 2020: data
cgtn.com
