Apple’s China smartphone shipments drop 6.7% as Huawei surges

Apple’s China smartphone shipments drop 6.

• Apple sees a 6.7% decline in smartphone shipments in China in the second quarter of 2024, with total shipments falling to 9.7 million.
• Huawei is expected to sell more than 50 million units this year, which would make Huawei the No. 1 seller with a market share of 19%, up from 12% in 2023.

OUR TAKE
Huawei made a comeback in high-end smartphones in defiance of U.S. sanctions last August. Huawei Mate 60 Pro became the world’s first smartphone to support satellite calls, the new Kirin chip, faster 5G network speed instantly detonated the entire market, and appeared in the public opinion field with a “far ahead” attitude.
–Zora Lin, BTW reporter

What happened

Apple sees a 6.7% decline in smartphone shipments in the Chinese market in the second quarter of 2024 according to market research firm Canalys, with total shipments falling to 9.7 million units, down from 10.4 million units in the same period last year.

The data shows that Apple’s market share fell to 14% from 16% in the same quarter of 2023. Huawei is expected to sell more than 50 million units, of which the Pura70 series will contribute 10 million units. That would make Huawei the No. 1 vendor, with a market share of 19%, up from 12% in 2023.

As a result, Apple’s ranking in the Chinese smartphone market falls from third to sixth.

Smartphone shipments in China rise 10% in the quarter. Vivo tops the list with a 19 percent market share, followed by Oppo, Honor and Huawei with 16 percent, 15 percent and 15 percent, respectively.

Lucas Zhong, research analyst at Canalys, says: “Domestic manufacturers have demonstrated market leadership, occupying the top five positions in the Chinese mainland market for the first time. On the other hand, Apple is facing growth pressure in the Chinese market and is actively working to optimise channel management.”

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Why it’s important

Apple’s declining smartphone shipments in China highlight the difficulties the US tech giant faces in its third-largest market, where it faces increasing competition from rivals such as Huawei.

This data reveals a significant change in the competitive landscape of the Chinese market, indicating that Apple’s advantage in the global market is being challenged, while local brands are rapidly rising to reshape the market dynamics. Huawei is expected to become the largest seller in the domestic market by 2024, marking a strong recovery for Huawei in the Chinese market, a trend that challenges Apple’s position in the Chinese market, and also portends more fierce competition in the smartphone market.

Domestic brands such as Vivo, Oppo, Honor and Huawei all occupy the top five positions in terms of market share. This marks a significant increase in the dominance of local Chinese smartphone makers in the market, a trend that could have implications for the global market.