IPhone sales in China fall 19% as Huawei surges
Apple lost its throne as China’s bestselling smartphone brand after sales declined by 19.1 per cent in the first quarter amid rising competition from Huawei Technologies and other local rivals, according to market research firm Counterpoint.
The US firm, which topped smartphone sales in China in the fourth quarter of last year, saw its market share in the past quarter shrink to 15.7 per cent from 20.2 per cent previously. It ranked third, overtaken by Vivo and Huawei spin-off Honor, which secured shares of 17.4 per cent and 16.1 per cent, respectively.
Huawei, in fourth spot with a share of 15.5 per cent, achieved sales growth of nearly 70 per cent, “largely attributed to the successful launch of the 5G-capable Mate 60 series and its brand reputation”, Counterpoint said in its report.
“Apple’s sales were subdued during the quarter as Huawei’s comeback has directly affected Apple in the premium segment,” said Ivan Lam, a senior research analyst at Counterpoint.
Amid fierce competition in the world’s largest smartphone market, Apple last month launched its eighth store in Shanghai, touted to be the largest in the country and the second-largest in the world.
CEO Tim Cook celebrated the store’s opening in person, as part of a high-profile tour in China that included an appearance at the China Development Forum, meetings with local game developers and the founder of electricvehicle giant BYD, and a morning stroll with actor Zheng Kai.
The Cupertino, Californiabased company is also exploring a tie-up with internet search and artificial intelligence giant Baidu to install the latter’s Ernie chatbot on iPhones sold in China, according to a report by The Wall Street Journal last month.
Apple was set to achieve “slow but steady improvement” in the coming months, Counterpoint’s Lam said.
“For the second quarter, the possibility of new colour options combined with aggressive sales initiatives could bring the brand back into positive territory,” he said.
Still, the iPhone 15 and the coming 16 series will face strong competition from Huawei’s new Pura 70 series, which shipped its high-end Pro and Ultra models last week.
The Pura 70 model represents the company’s biggest flagship handset launch since the Mate 60 Pro last year, which featured a Chinese-made processor.
Huawei is expected to regain the No 1 position in China this year, shipping more than 50 million smartphones, including around 10.4 million Pura 70 handsets, according to a report last week by research company TechInsights.
From January to March, China’s smartphone market registered growth for the second consecutive quarter following 10 quarters of declines, according to Counterpoint. The firm forecast “low single-digit” growth for the full year, compared with a decline of 1.4 per cent last year.