Apple Falls to Sixth Place in China’s Smartphone Market Amid Fierce Competition

Apple led the way in terms of margins for all smartphone sales but was outside of the top five smartphone vendors at retail in China, dropping from number two overall while still coming sixth with a bullet. This news comes by way of market research firm Canalys, which reports a 6.7% year-on-year decrease in iPhone shipments to China.

Market analysts blamed the slump on stiff competition from domestic players like Huawei, Vivo, Oppo, and its sub-brand Honor and Xiaomi In particular, Huawei has seen a revival in the high-end market thanks to top-of-the-line chips that are designed and made entirely within China.

Apple

Apple’s Performance in China

According to a third research firm, the overall Chinese smartphone market expanded by 10% year-on-year in Q2 with over 70 million units shipped. Vivo was crowned king at the top with 13.1 million units and a market share of 19%. This was followed by Oppo with 11.3 million units, Honor with 10.7 million, and Huawei at number four with shipments of just over 10.6 million units.

This pushed Xiaomi back into the top five with a 17% YoY growth to ship more than 10 million units. Apple posted shipments of 9.7 million units during the same quarters, which resulted in a market share of 14% down from the previous year’s at exactly double that number.

image 13 23 Apple Falls to Sixth Place in China’s Smartphone Market Amid Fierce Competition

China is an arena where the heightened competition and market dynamics have presented a unique challenge for Apple. That dropped the company from third place to sixth as its market share fell year over year from 16% in the first quarter. Despite promotional efforts, including discounts of up to 23%, Apple has struggled to maintain its market position. The Chinese also enjoy a high degree of brand loyalty and do not rely as heavily on international supply chains as foreign vendors, so local brands have managed to gain some ground.

image 13 24 Apple Falls to Sixth Place in China’s Smartphone Market Amid Fierce Competition

Apple’s Chief Operating Officer Jeff Williams recently visited China, meeting with officials in Beijing and Shenzhen to reinforce Apple’s commitment to the Chinese market. Canalys analyst Lucas Zhong emphasized the importance of Apple localizing its services for China within the next year to regain market share.

Apple’s Chief Operating Officer Jeff Williams recently visited China, meeting with officials in Beijing and Shenzhen to reinforce Apple’s commitment to the Chinese market. Canalys analyst Lucas Zhong emphasized the importance of Apple localizing its services for China within the next year to regain market share.

FAQs

Why did Apple fall out of the top five smartphone vendors in China?

Apple faced intense competition from domestic brands like Huawei, Vivo, Oppo, Honor, and Xiaomi, leading to a decline in iPhone shipments.

What is Apple’s market share in China as of Q2 2024?

Apple’s market share in China dropped to 14% in Q2 2024, down from 16% the previous year.

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