Apple is no longer one of the top five smartphone sellers in China, according to independent research, as the price of the iPhone falls due to a weak economy, new competition and an alleged government ban.
Research published by Canalis And International Data Center This week, a smartphone shipments measurement report showed that Apple slipped to sixth place in China’s smartphone market in the last quarter. Chinese brands now dominate the rankings, with both companies putting Vivo in the lead. Canalys and IDC also ranked Huawei, Oppo, Honor and Xiaomi in the top five.
Apple shipped 9.7 million iPhones in the second quarter, down from 10.4 million in the same period last year, according to Canalys data. Overall, China’s smartphone market grew 10% year-on-year, with shipments surpassing 70 million units.
Canalyst reports that Apple’s market share is 14%, down 2 percentage points from the same period last year. IDC research shows a 3.1% decline in shipments, Despite the big discounts in the second quarter of the year.
“This is the first quarter in history where domestic companies dominate all five of the top spots,” notes Lucas Chong, research analyst at Canalys. “Chinese companies’ strategies of going high-end and deepening collaboration with local supply chains are starting to pay off in hardware and software features.”
Analysts have pointed to competition from Huawei as the reason behind Apple’s struggles. The US-blacklisted tech company has seen its fortunes rebound since it launched a new premium smartphone with a domestically produced processor about a year ago.
“Huawei’s comeback has had a certain impact on Apple’s performance, especially in the high-end segment,” said Will Wong, senior research director for client devices at IDC.
Xiaomi’s smartphone sales have been boosted by the launch of its new electric car, according to a report from Canalys. Xiaomi has been selling its new electric car, the SU7, since late March.
The iPhone is a major source of revenue for Apple, accounting for just over half of its sales last year. The Greater China market, which includes Hong Kong and Taiwan, accounts for 19% of Apple’s total revenue in 2023 and is Apple’s third-largest region by sales.
There is a growing divide between independent assessments of Apple’s business in China and the iPhone maker’s own statements. Earlier this year, Apple CEO Tim Cook said iPhone sales in China grew in the quarter ending in March, though he did not provide details.
But even with Apple’s slide in the rankings, IDC notes that the iPhone maker is still in a better position than it was in 2020. Estimates Apple now controls 13.6% of China’s smartphone market, up from 8.3% in Q3 2020.
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