Apple Falls Out of Top Five Smartphone Vendors in China Amidst Rising Domestic Competition
- Apple's smartphone market share in China fell by 2% during the second quarter of the year.
- The decline is attributed to increased competition from domestic rivals, particularly Huawei.
- This marks a significant shift, as Apple has now fallen out of the top five smartphone vendors in China.
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 decreased 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, now ranks sixth with approximately 9.7 million units shipped, reflecting a significant decline in shipments since 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. Honor's latest Magic V3 foldable device exemplifies this trend, showcasing the effectiveness of local vendors' strategies in both hardware and software. In contrast, Apple is reportedly facing challenges in stabilizing retail prices and maintaining profit margins in the competitive Chinese market. Vivo has reclaimed the top position in the Chinese smartphone market with a 19% share and 13.1 million units shipped, driven by strong sales during the "618" e-commerce festival. Oppo and Honor follow in second and third place, respectively, while Huawei has made a notable comeback with its Mate 60 smartphone, securing fourth place. Xiaomi rounds out the top five, benefiting from the excitement surrounding its first electric car. Overall, the Chinese smartphone market experienced a 10% year-on-year growth in the second quarter, with total shipments surpassing 70 million units, indicating a robust recovery in consumer demand.