Counterpoint Report: Apple’s Market Share in China Falls to 15.7%, Ranking Fourth
Amidst heightened competition from domestic players like Huawei, Apple encountered a notable setback in the Chinese smartphone market, with iPhone sales witnessing a significant 24 percent decline in the first six weeks of 2024, as reported by research firm Counterpoint.
Meanwhile, Huawei, Apple’s chief rival in the premium smartphone segment in China, experienced a stark contrast, with unit sales surging by an impressive 64 percent during the same period, according to the report. These contrasting trajectories underscore the intensified competition within the Chinese smartphone landscape and the shifting preferences of consumers in the region.
The substantial drop in iPhone sales could potentially signal a looming slowdown in demand for Apple, exacerbating concerns already reflected in the company’s revenue forecast for the current quarter. With projections falling short of Wall Street expectations by $6 billion, or roughly Rs. 49,740 crore, the latest figures underscore the formidable challenges confronting Apple in one of the world’s largest and most dynamic smartphone markets.
As the battle for market dominance intensifies, Apple finds itself navigating a competitive landscape increasingly dominated by domestic players like Huawei, highlighting the imperative for
Shares of the iPhone maker closed 2.8 percent lower on Tuesday and have lost about 12 percent of their value so far this year, underperforming their big tech peers in the United States.Counterpoint’s report said Apple’s share of the Chinese smartphone market dropped to 15.7 percent, putting it in fourth place, compared with second place in the year-ago period when it had 19 percent market share.
Huawei rose to second place as its market share expanded to 16.5 percent from 9.4 percent a year earlier. The overall smartphone market in China shrank 7 percent, the report said. Apple “faced stiff competition at the high end from a resurgent Huawei while getting squeezed in the middle on aggressive pricing from the likes of OPPO, Vivo and Xiaomi,” Counterpoint’s senior analyst Mengmeng Zhang said.
Huawei has seen a resurgence in its premium smartphone sales since it released its Mate 60 series in August after struggling for years with U.S. curbs on the exports of key components to the company. Honor, the smartphone brand spun off from Huawei in 2020, was the only other top-five brand to see unit sales increase during the first six weeks of the year, up 2 percent. Chinese brands Vivo, Xiaomi and Oppo dropped 15 percent, 7 percent and 29 percent, respectively.