Apple ousted from top 5 in world's largest smartphone market
Apple has fallen out of the top five smartphone brands in China, as reported by Canalys. The tech giant's market share dipped to 14% in the second quarter, a decrease from 15% in the first quarter and 16% a year ago. Canalys noted this is "the first quarter in history that domestic vendors dominate all the top five positions." Apple's shipments have been on a downward trend since Q1, with a 25% drop year-on-year to 10 million units.
Apple's position drops to sixth in Chinese market
Apple, which held the third spot in the same period last year, has now dropped to sixth place with approximately 9.7 million units shipped. Canalys research analyst Lucas Zhong attributes this change to Chinese vendors' strategies for high-end products and their deep collaboration with local supply chains. He cited HONOR's latest Magic V3 as an example, which uses GenAI technology to significantly enhance user experience on foldable devices.
Apple faces challenges in stabilizing retail prices
Apple is currently facing challenges in the Chinese market as it seeks to stabilize retail prices and protect channel partner margins. Canalys suggests that localizing Apple Intelligence services in China could be a crucial move over the next year. This comes as Chinese brands aggressively incorporate AI into their products. Meanwhile, Vivo reclaimed the top spot with a 19% market share and 13.1 million units shipped between April and June, largely driven by strong sales during China's "618" e-commerce festival.
Huawei took fourth place with a 15% market share
OPPO maintained its second position with 11.3 million units shipped, boosted by the launch of its new Reno 12 series. Huawei spinoff HONOR secured third place with 10.7 million units shipped, marking a 4% year-on-year increase. Huawei itself took fourth place with a 15% market share and 10.6 million units shipped, a significant improvement from not being in the top five a year earlier. The resurgence of Huawei was primarily due to the launch of its Mate 60 smartphone series.
Xiaomi rounds out top five, Chinese market grows
Xiaomi secured the fifth spot, with the buzz from its first electric car, the SU7, contributing to robust sales of its K70 and flagship 14 series. Overall, the Chinese smartphone market, the world's largest, grew by 10% year on year in the second quarter. Shipments exceeded 70 million units during this period. This growth signifies a strong domestic demand for smartphones and highlights the increasing competitiveness of local brands in China's tech industry.
