Apple Drops to Sixth Place in China's Smartphone Market
For the first time in years, Apple has fallen out of the top five smartphone vendors in China, ranking sixth in the second quarter of 2024.
Data from Canalys, a market research firm, shows that Apple's iPhone shipments in China declined by 6.7% year-on-year. This drop has been attributed to fierce competition from domestic brands such as Huawei, Vivo, Oppo, Honor, and Xiaomi. Huawei, in particular, has seen a resurgence in the high-end smartphone market, fueled by advanced chips produced entirely in China.
Canalys reported that the overall Chinese smartphone market experienced a 10% year-on-year growth in the second quarter of 2024, with shipments exceeding 70 million units. Vivo reclaimed the number one spot by shipping 13.1 million units, capturing a 19% market share. Oppo followed with 11.3 million units, Honor with 10.7 million units, and Huawei with 10.6 million units. Xiaomi re-entered the top five with a 17% year-on-year increase, shipping 10 million units. In contrast, Apple's shipments dropped to 9.7 million units, representing a 14% market share.
The increased competition and market dynamics in China have posed significant challenges for Apple. The company's market share decreased from 16% in the previous year to 14%, pushing it from third to sixth place. Despite promotional efforts, including significant discounts of up to 23%, Apple has struggled to maintain its market position. The competitive landscape has been further complicated by the overall growth of local vendors, which have benefited from their localized supply chains and strong brand loyalty among Chinese consumers.
Apple's Chief Operating Officer Jeff Williams recently visited China, meeting with officials in Beijing and Shenzhen to reinforce Apple's commitment to the Chinese market. Canalys analyst Lucas Zhong emphasized the importance of the company localizing Apple Intelligence for China within the next year to regain market share. The anticipated release of the iPhone 16 lineup later this year is also expected to drive demand and potentially improve Apple's market position.
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