In the second quarter of 2024, Apple experienced a 6.7% decline in its smartphone shipments in China, according to Canalys. This drop highlights the challenges faced by Apple in its third-largest market, with its shipments decreasing from 10.4 million units in the same quarter of 2023 to 9.7 million units this year. The competitive landscape in China has intensified, putting pressure on Apple to maintain its market position.
Huawei, in contrast, saw a significant boost in its smartphone shipments, which surged by 41% year-on-year to reach 10.6 million units. This increase was driven by the successful launch of its new Pura 70 series in April. As a result, Huawei’s market share grew, and it now occupies a stronger position in the market, contributing to Apple’s declining performance.
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Apple’s market share in China fell from 16% to 14% year-on-year, causing its ranking in the Chinese smartphone market to drop from third place to sixth. Overall, the Chinese smartphone market saw a 10% increase in shipments during the quarter, with domestic brands like Vivo, Oppo, Honor, and Huawei leading the market.
Lucas Zhong, a research analyst at Canalys, noted that domestic manufacturers have achieved a historic feat by occupying all top five positions in the Chinese smartphone market. This shift emphasizes the growth pressure Apple faces and its efforts to enhance channel management and compete effectively.
To counter the declining sales, Apple has increased its discounting efforts, launching an aggressive promotional campaign in May with significant price reductions on select iPhone models.
Despite these efforts, Huawei’s strong performance is expected to continue, with projections indicating that Huawei will surpass 50 million smartphone shipments in China for 2024, positioning it as the leading seller with an anticipated market share of 19%.
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