IPhone shipments plunge as Huawei tightens grip

SHANGHAI: Apple Inc’s Chinese smartphone shipments plummeted an estimated 20 per cent in the final quarter of last year, underscoring the scale of the iPhone maker’s retreat in the world’s largest mobile device arena against local rivals like Huawei Technologies Co.

The overall Chinese market contracted by 9.7 per cent in the quarter, but Apple declined at about twice that pace, said research firm IDC in a report yesterday.

A slowing economy, lengthening replacement times and the iPhone’s hefty price tag contributed to the United States giant’s decline in China, said IDC.

Smartphone labels from Apple to Samsung Electronics Co are contending with a plateauing global market after years of breakneck growth, as a lack of industry innovation discourages consumers from replacing devices as often as they used to.

Huawei shored up its lead after unit shipments soared 23.3 per cent, leading all major brands, according to IDC.

That’s despite grappling with an unusually turbulent few months during which its finance chief was arrested on allegations of bank fraud, and the US marshalled its allies to try and block the company from selling nextgeneration networking equipment.

Apple was ranked fourth by shipments in the country during the period, following Oppo and Vivo, said IDC.

Fifth-ranked Xiaomi, a Chinese name that experienced rapid growth just before its 2018 initial public offering, incurred a 34.9 per cent plunge in shipments thanks to inventory corrections and an internal restructuring, said IDC.