Apple slipped out of the top five smartphone vendors in China in the second quarter, facing fierce competition from local brands like Huawei, as highlighted in a report by Canalys.
According to the report released on Thursday, Apple’s market share in China declined to 14% in the second quarter, down from 15% in the first quarter and 16% from the same period the previous year.
The tech giant, previously holding the third position in the second quarter of the preceding year, has now fallen to sixth place with an estimated 9.7 million shipments, as calculated by CNBC. The company has experienced a decline in shipments, plummeting by 25% year-on-year to 10 million units since the first quarter.
While Chinese brands have reaped benefits from their high-end product strategies and close collaboration with local supply chains, Apple has encountered challenges in stabilizing retail prices and safeguarding partner margins in the Chinese market.
Canalys highlighted Apple’s focus on localizing its intelligence services in China within the next 12 months, as Chinese competitors are rapidly integrating generative AI into their offerings.
During the April to June period, Vivo secured the top spot in the market with a 19% market share and 13.1 million units shipped, driven by robust offline and online sales during the “618” e-commerce event.
Oppo retained the second position with 11.3 million units, propelled by the introduction of its new Reno 12 series.
Huawei offshoot Honor ranked third with 10.7 million units shipped, depicting a 4% year-on-year rise.
Huawei claimed the fourth, as the company experienced a resurgence in its consumer business in China after the launch of the Mate 60 smartphone, while Xiaomi secured the fifth position, with the buzz surrounding its debut electric car, the SU7, playing a role in boosting sales of its K70 and flagship 14 series smartphones.
Overall, the Chinese smartphone market expanded by 10% year-on-year in the second quarter, with shipments surpassing 70 million units, according to Canalys.
