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Apple falls out of top five smartphone brands in China

Apple falls out of top five smartphone brands in China

Web Desk
Jul 26, 2024

WEB DESK: In a notable shift, Apple has fallen out of the top five smartphone vendors in China for the first time in years, securing the sixth position in the second quarter of 2024.

According to Canalys, a leading market research firm, Apple’s iPhone shipments in China saw a year-on-year decline of 6.7 per cent. This downturn is largely attributed to intense competition from domestic brands, including Huawei, Vivo, Oppo, Honor, and Xiaomi.

Huawei, in particular, has experienced a revival in the premium smartphone segment, bolstered by its advanced chips, which are produced entirely within China.

The Chinese smartphone market as a whole grew by 10 per cent year-on-year in the second quarter, with shipments surpassing 70 million units. Vivo emerged as the market leader, shipping 13.1 million units and capturing a 19 per cent market share.

Oppo followed closely with 11.3 million units, while Honor shipped 10.7 million units and Huawei delivered 10.6 million units. Xiaomi re-entered the top five with a 17 per cent increase in shipments, reaching 10 million units. In contrast, Apple’s shipments fell to 9.7 million units, giving it a 14 per cent market share.

This heightened competition and evolving market conditions have posed significant challenges for Apple. The company’s market share decreased from 16 per cent in the previous year to 14 per cent, resulting in its drop from third to sixth place.

Despite aggressive promotional strategies, including discounts of up to 23 per cent, Apple has struggled to hold its ground. The rise of local competitors, who benefit from established supply chains and strong consumer loyalty, has further complicated the situation.

In response to these challenges, Apple’s Chief Operating Officer Jeff Williams recently visited China, engaging with officials in Beijing and Shenzhen to reaffirm the company’s commitment to the Chinese market.

Canalys analyst Lucas Zhong highlighted the need for Apple to adapt its strategies for the Chinese market, particularly by localising its Apple Intelligence within the next year to reclaim lost market share.

Looking ahead, the release of the iPhone 16 lineup later this year is anticipated to stimulate demand and potentially enhance Apple’s position in the market.