Apple lost the top 5 ranking in smartphone sales in China for the first time as competition from domestic brands gets more competitive. According to a Canalys report, Apple’s market share in China shrank to 14% in the second quarter, down from 15% in the first quarter and 16% in the same period a year ago.
Apple’s shipments have also declined, dropping 25% year-on-year to 10 million units in the first quarter. This decline is due to the Chinese vendors’ strategies for high-end products and deep collaboration with local supply chains.
Apple is challenged by balancing retail prices and protecting the margins of channel partners in China. Localizing Apple Intelligence services in China, where they are also planning to bring Apple TV+, will be an important move in the next 12 months. Apple is planning to go Samsung’s way, as Chinese brands are aggressively incorporating generative AI into their products.
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From April to June,
- Vivo reclaimed the top spot with a 19% market share and 13.1 million units shipped, driven by strong sales during the “618” e-commerce festival.
- Oppo maintained second place with 11.3 million units,
- While Huawei’s spinoff Honor came in third with 10.7 million units shipped.
- Huawei itself captured fourth place with a 15% market share and 10.6 million shipment units.
- Xiaomi rounded out the top five. And hence, Apple lost its top 5 spot.
Overall, the Chinese smartphone market grew 10% year-on-year in the second quarter, with shipments exceeding 70 million units.
What do you think? Will Apple be able to make up the lost positions?
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