Apple has fallen out of the top 5 ranking of smartphone vendors in China, according to data trackers, marking the first time in years the iPhone maker has fallen so low in one of its most important markets.
“It is the first quarter in history that domestic vendors dominate all the top five positions,” Canalys analyst Lucas Zhong wrote. “Conversely, Apple is facing a bottleneck in mainland China.”
iPhone sales have been slumping in China this year amid fierce competition from local vendors, including Huawei, which has experienced a resurgence in the higher-end smartphone market thanks to an advanced processor produced entirely in China that has ignited patriotic fervour at home.
“In the first half of the year, Huawei was the leader in the market despite the US trade restrictions, further closing the gap with Apple in the >US$600 segment,” research firm IDC’s senior analyst Arthur Guo wrote in a report published on Friday.
Apple did not immediately respond to a request for comment on Friday.
Huawei, Vivo and Xiaomi all saw double-digit year-on-year growth in the second quarter, according to both Canalys and IDC.
While the Android smartphone market in China grew 11.1 per cent, Apple shipments this quarter decreased 3.1 per cent from the same period a year ago, despite promotions that helped improve iPhone demand in the country, according to IDC, which also ranked Apple 6th in market share for the quarter.
According to IDC’s data, Apple last dipped out of the top five in the third quarter of 2020, Guo said in response to written questions.
A separate report from research firm Counterpoint that tracks sales instead of shipments offered a rosier outlook for Apple, placing the iPhone maker at No 2 in China for the quarter with a market share of 15.5 per cent. It was closely trailed by Huawei at 15.4 per cent, Xiaomi at 15.3 per cent, and Honor at 15.2 per cent.
“Despite a single-digit year-on-year decline, Apple’s performance in the second quarter remains impressive,” said Counterpoint senior analyst Ivan Lam. “However, Apple is expected to experience a traditional slump in the third quarter, as consumers awaiting the release of the iPhone 16 may delay their upgrades.”
In Beijing, Williams was among American executives who met with Chinese Vice-Premier He Lifeng and Foreign Minister Wang Yi on Monday as part of the first US business delegation to visit China after a key Communist Party meeting this month, which also included executives from FedEx and Micron.
Williams also met with Meng Fanli, Shenzhen’s Communist Party secretary. The executive reportedly told Meng that Apple would increase its investment in the southern Chinese tech hub, praising the city’s smartphone supply chain.
Source link
