Apple has fallen out of the top five smartphone vendors in China for the first time since its rapid rise in the market. According to market research firm Canalys, iPhone shipments in China declined by 6.7% year-on-year in the second quarter of 2024. Apple stumbles in China, falls out of top five smartphone vendors
Analysts attribute this drop to the resurgence of domestic brands. Fueled by advanced, locally produced components, Chinese companies like Huawei, Vivo, Oppo, Honor, and Xiaomi have seen significant growth. Huawei, in particular, has made a strong comeback in the high-end market, challenging Apple’s premium status.
You can read more Technology articles
The Chinese smartphone market as a whole grew by 10% year-on-year, with over 70 million units shipped in Q2. Vivo led the market with a 19% share (13.1 million units shipped), followed by Oppo, Honor, and Huawei, each shipping around 10 million units. Xiaomi, which had been struggling, saw a 17% year-on-year increase, re-entering the top five with 10 million units shipped.`
In contrast, Apple’s shipments fell to 9.7 million units, giving it a reduced market share of 14%. Despite offering discounts of up to 23%, the company struggled to maintain its position. Domestic competitors benefited from localized supply chains and strong brand loyalty among Chinese consumers.
In response to this decline, Apple’s Chief Operating Officer Jeff Williams recently visited China to meet with officials and reaffirm the company’s commitment to the market. Analysts like Lucas Zhong of Canalys suggest that Apple needs to localize its “Apple Intelligence” platform for China within the next year to regain lost ground. The upcoming iPhone 16 lineup also presents a chance to boost demand and improve Apple’s market position.Apple stumbles in China, falls out of top five smartphone vendors
However, the competition is fierce. Domestic brands offer attractive features at competitive prices, and it remains to be seen whether Apple can adapt and reclaim its former dominance in China.
Follow HiTrend on X
