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Apple loses top 5 spot in China smartphone market as domestic brands dominate


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Apple loses top 5 spot in China smartphone market as domestic brands dominate

Customers are shopping for the iPhone 15 at the flagship store of Apple Smart Products on Nanjing Road Pedestrian Street in Shanghai, China, on May 24, 2024. 

Costfoto | Nurphoto | Getty Images

Apple was edged out of the top five smartphone vendors’ list in China in the second quarter, as competition from domestic brands such as Huawei intensifies, according to

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.

Apple’s market share in China shrank to 14% in the second quarter, the report released Thursday showed, from

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and
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The iPhone maker,

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which was
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in the second quarter last year,
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with about 9.7 million in shipments, according to CNBC calculations.

“It is the first quarter in history that domestic vendors dominate all the top five positions,” said Lucas Zhong, research analyst at Canalys.

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since the first quarter when they dropped 25% year on year to 10 million units.

“******** vendors’ strategies for high-end products and their deep collaboration with local supply chains are starting to pay off in hardware and software features. Honor’s latest Magic V3, which leverages GenAI, has significantly enhanced the user experience of foldable devices,” Zhong added.

On the other hand, Apple is facing a “bottleneck” in the ******** market as it aims to “stabilize retail prices and protect margins of channel partners,” he said.

Localization of Apple Intelligence services in China will be an important move in the next 12 months, Canalys said, as ******** brands are aggressively incorporating generative AI into their products.

******** brands dominate

From April to June, Vivo reclaimed the top spot with 19% market share and 13.1 million units shipped – driven by strong offline and online sales during the “618” e-commerce festival.

Oppo maintained second place with 11.3 million units, buoyed by the launch of its new Reno 12 series. Huawei spinoff Honor came in third with 10.7 million units shipped, marking a 4% year-on-year increase.

Huawei came fourth with 15% market share and 10.6 million shipment units — it had not made it to the top five a year earlier. Huawei’s consumer business has seen a resurgence in China after the launch of its Mate 60 smartphone.

Xiaomi took the fifth spot with the buzz from its first electric car, the SU7, also contributing to solid sales of its K70 and flagship 14 series, Canalys said.

Overall, the ******** smartphone market grew 10% year on year in second quarter, with shipments exceeding 70 million units, Canalys said.

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