Apple’s presence in China’s smartphone market has taken a hit, with the company’s market share dropping by two percentage points in the second quarter of 2024. This decline highlights the challenges the U.S. tech giant faces in its third-largest market. Huawei, a major competitor, experienced a remarkable 41% increase in smartphone shipments year-on-year, propelled by the successful launch of its Pura 70 series in April.
Data from Canalys, a renowned market research firm, indicates that Apple’s market share in China fell to 14% in Q2 2024, down from 16% in the same period in 2023. Consequently, Apple’s ranking in the Chinese smartphone market slipped from third to sixth place. Overall, smartphone shipments in China grew by 10% during the quarter. Vivo emerged as the leading vendor with a 19% share, followed by Oppo (16%), Honor (15%), and Huawei (15%).
Lucas Zhong, a research analyst at Canalys, stated, “Domestic manufacturers have demonstrated market leadership, occupying the top five positions in the mainland Chinese market for the first time in history. On the other hand, Apple faces growth pressure in the Chinese market and is actively focusing on optimizing channel management.”
Huawei made a significant comeback in the high-end smartphone segment last August by introducing a device powered by a domestically-made chip, successfully navigating around U.S. sanctions that have restricted its access to the global chipset supply chain. To combat declining sales, Apple has significantly increased its discount offerings this year to attract consumers. The company launched an aggressive campaign in May, doubling the scale of an earlier promotion in February and offering discounts of up to 2,300 yuan ($318.84) on select iPhone models.
Analysts predict that Huawei’s strong performance will continue throughout the year. According to Canadian research firm TechInsights, Huawei’s overall smartphone shipments in China are expected to surpass 50 million units in 2024, with the Pura 70 series accounting for 10 million of those shipments. This would make Huawei the leading seller with a 19% market share, up from 12% in 2023.
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