The once dominant Apple has been pushed out of the top five smartphone vendors in China as competition from domestic brands like Huawei intensifies. According to a recent Canalys report, Apple’s market share in China dropped to 14% in the second quarter, compared to 16% in the same period a year ago. This decline has been attributed to the rising success of local brands in the Chinese market.
Apple, which was the third-largest smartphone vendor in China just a year ago, has now dropped to the sixth spot with approximately 9.7 million shipments. The company has been struggling to compete with Chinese vendors who are implementing high-end features and establishing strong relationships with local supply chains. Canalys’ research analyst, Lucas Zhong, highlighted the need for Apple to focus on stabilizing retail prices and protecting the margins of its channel partners in order to succeed in the Chinese market.
Chinese vendors have been investing heavily in product development and software features, leading to increased market dominance. Vivo secured the top spot in the second quarter with a 19% market share, followed by Oppo, Honor, Huawei, and Xiaomi. These brands have been innovating and leveraging generative AI to enhance user experiences, a strategy that has paid off with higher shipment volumes and market share.
Despite Apple’s decline, the Chinese smartphone market has seen a 10% year-on-year growth in the second quarter. With total shipments exceeding 70 million units, the market continues to expand rapidly, driven by the success of local brands and their focus on innovation and consumer preferences. As Chinese brands continue to evolve and adapt to changing market demands, Apple will need to make strategic moves to regain its foothold in the competitive Chinese smartphone market.