A customer buys an iPhone 15 at the Apple Smart Products flagship store on Nanjing Road Pedestrian Street in Shanghai, China, May 24, 2024.
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apple The company fell out of the top five Chinese smartphone makers in the second quarter amid growing competition from domestic brands such as Huawei. Canalys Report.
Apple’s market share in China shrank to 14% in the second quarter, according to a report released on Thursday. 15% in the first quarter and 16% YoY.
iPhone maker, Which The third largest smartphone vendor In the second quarter of last year Dropped to 6th place According to CNBC’s calculations, shipments totaled about 9.7 million units.
“This is the first quarter ever that domestic vendors have swept all of the top five spots,” said Lucas Zhong, research analyst at Canalys.
Apple’s shipments are declining In the first quarter, sales fell 25% year-over-year to 10 million units.
“Chinese vendors’ high-end product strategies and close collaboration with local supply chains are starting to pay off in hardware and software capabilities. Honor’s latest Magic V3, powered by GenAI, has significantly improved the user experience of foldable devices,” Zhong added.
Meanwhile, Apple is looking to “stabilize retail prices and protect the interests of its channel partners” and is facing a “bottleneck” in the Chinese market, he said.
Canalys said the localization of Apple Intelligence services in China will be a key move over the next 12 months, as Chinese brands eagerly incorporate generative AI into their products.
Chinese brands dominate
Vivo regained the top spot with a 19% market share and 13.1 million units shipped in the April-June period, thanks to strong offline and online sales during the “618” e-commerce festival.
Oppo maintained second place with 11.3 million units shipped, buoyed by the launch of its new Reno 12 series. Huawei subsidiary Honor took third place with 10.7 million units shipped, up 4% year-over-year.
Huawei ranked fourth with a 15% market share and 10.6 million units shipped, but did not even make it into the top five last year. Huawei’s consumer business has seen a resurgence in China following the launch of its Mate 60 smartphone.
Xiaomi came in fifth place thanks to the buzz surrounding its first electric vehicle, the SU7, which was also helped by strong sales of the K70 and its flagship 14 Series, according to Canalys.
According to Canalys, China’s smartphone market grew 10% year-over-year in the second quarter, with shipments exceeding 70 million units.
