For the primary time in years, Apple has fallen out of the highest 5 smartphone distributors in China, rating sixth within the second quarter of 2024.
Knowledge from Canalys, a market analysis agency, exhibits that Apple’s iPhone shipments in China declined by 6.7% year-on-year. This drop has been attributed to fierce competitors from home manufacturers akin to Huawei, Vivo, Oppo, Honor, and Xiaomi. Huawei, specifically, has seen a resurgence within the high-end smartphone market, fueled by superior chips produced completely in China.
Canalys reported that the general Chinese language smartphone market skilled a ten% year-on-year progress within the second quarter of 2024, with shipments exceeding 70 million models. Vivo reclaimed the primary spot by delivery 13.1 million models, capturing a 19% market share. Oppo adopted with 11.3 million models, Honor with 10.7 million models, and Huawei with 10.6 million models. Xiaomi re-entered the highest 5 with a 17% year-on-year enhance, delivery 10 million models. In distinction, Apple’s shipments dropped to 9.7 million models, representing a 14% market share.
The elevated competitors and market dynamics in China have posed vital challenges for Apple. The corporate’s market share decreased from 16% within the earlier yr to 14%, pushing it from third to sixth place. Regardless of promotional efforts, together with vital reductions of as much as 23%, Apple has struggled to keep up its market place. The aggressive panorama has been additional sophisticated by the general progress of native distributors, which have benefited from their localized provide chains and robust model loyalty amongst Chinese language shoppers.
Apple’s Chief Working Officer Jeff Williams not too long ago visited China, assembly with officers in Beijing and Shenzhen to strengthen Apple’s dedication to the Chinese language market. Canalys analyst Lucas Zhong emphasised the significance of the corporate localizing Apple Intelligence for China throughout the subsequent yr to regain market share. The anticipated launch of the iPhone 16 lineup later this yr can also be anticipated to drive demand and doubtlessly enhance Apple’s market place.
