Apple Falls Out of Top Five Smartphone Vendors in China Amidst Rising Domestic Competition

In a recent report by Canalys, Apple has been pushed out of the top five smartphone vendors in China for the second quarter of 2023, as competition from local brands intensifies. Apple's market share declined to 14%, down from 15% in the previous quarter and 16% a year ago. The tech giant, which was the third-largest vendor last year, slipped to sixth place with approximately 9.7 million units shipped, reflecting a significant year-on-year drop of 25% from the first quarter. The report highlights the growing strength of Chinese brands, particularly in the high-end smartphone segment. Companies like Honor are leveraging advanced technologies, such as generative AI, to enhance user experiences, as seen with their latest Magic V3 foldable device. In contrast, Apple is reportedly facing challenges in stabilizing retail prices and maintaining profit margins for its channel partners, which may hinder its competitiveness in the market. Vivo emerged as the leading smartphone vendor in China during this period, capturing 19% of the market share with 13.1 million units shipped, largely due to strong sales during the "618" e-commerce festival. Oppo and Honor followed in second and third places, respectively, while Huawei made a notable comeback with its Mate 60 smartphone, securing fourth place. Xiaomi rounded out the top five, benefiting from the excitement surrounding its first electric car. Overall, the Chinese smartphone market experienced a robust growth of 10% year-on-year in the second quarter, with total shipments surpassing 70 million units, indicating a vibrant and competitive landscape.