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For The First Time In History, Apple Is Not China's "Top 5" Smart Phone Vendors

AInvestFriday, Jul 26, 2024 4:00 am ET
1min read

A report from Canalys, a global technology market analysis firm, indicates that Apple has been pushed out of the top five smartphone vendors in China for the second quarter of this year due to intensified competition from domestic brands such as Huawei.

The latest report released on Thursday shows that Apple's market share in China dropped from 15% in the first quarter to 14% in the second quarter, compared to 16% in the same period last year. According to media calculations, Apple was the third-largest global smartphone vendor in the second quarter of last year, but this year its shipments fell to approximately 9.7 million units, ranking sixth.

Lucas Zhong, a research analyst at Canalys, stated, It is the first quarter in history that domestic vendors dominate all the top five positions.

Chinese vendors' strategies for high-end products and their deep collaboration with local supply chains are starting to pay off in hardware and software features. Honor's latest Magic V3, which leverages GenAI, has significantly enhanced the user experience of foldable devices.

Zhong also mentioned that on the other hand, Apple is facing a bottleneck in the Chinese market because it aims to stabilize retail prices and protect the profits of channel partners.

Canalys believes that the localization of Apple Smart services in China will be an important move in the next 12 months, as Chinese brands are actively integrating generative artificial intelligence into their products.

From April to June, driven by strong offline and online sales during the 618 e-commerce festival, Vivo reclaimed the top spot with a 19% market share and shipments of 13.1 million units.

Oppo maintained its second position with shipments of 11.3 million units, thanks to the launch of the new Reno 12 series. Honor ranked third with shipments of 10.7 million units, a year-on-year increase of 4%; Huawei ranked fourth with a 15% market share and shipments of 10.6 million units, which did not make it into the top five last year. After the launch of the Mate 60 smartphone, Huawei's sales have seen a recovery in China.

It is also worth mentioning that Canalys stated that Xiaomi, with its first electric vehicle Su7, has gained more attention, and Xiaomi's smartphones have become the dark horse of the second quarter. Hardware configuration and price remain Xiaomi's most attractive advantages to consumers, with shipments growing by 16.5% year-on-year, successfully pushing out Apple and ranking fifth.

According to Canalys's report, overall, the Chinese smartphone market grew by 10% year-on-year in the second quarter, with shipments exceeding 70 million units.

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