Apple's market share in China has been shrinking and decreased to 14% in the second quarter, down from 15% and 16% in the first quarter and the same period last year, respectively. Canalys research analyst Lucas Zhong said that this is the first time in history that domestic manufacturers have occupied the top five positions.
On July 26, financial news service reported that Apple was knocked out of China's top five smartphone suppliers by competition from domestic brands such as Huawei, according to a report by Canalys, a global technology market analysis company.
The latest report on Thursday showed that Apple's market share in China in the second quarter fell from 15% in the first quarter to 14%, and 16% in the same period last year. According to media estimates, in the second quarter of last year, Apple was the third largest smartphone supplier in the world, but this year's shipments fell to about 9.7 million units, ranking sixth. "The high-end product strategy of Chinese suppliers, as well as their deep cooperation with the local supply chain, are starting to pay off in terms of hardware and software functionality. Honor's latest Magic V3 uses generative AI technology, greatly enhancing the user experience of foldable devices," Canalys research analyst Lucas Zhong said.
Lucas Zhong, a Canalys research analyst, said: "This is the first time in history that Chinese domestic manufacturers have occupied all of the top five positions in a single quarter."
"Chinese suppliers' high-end product strategy, as well as their deep cooperation with the local supply chain, are starting to pay off in terms of hardware and software functionality. Honor's latest Magic V3 uses generative AI technology, greatly enhancing the user experience of foldable devices," Canalys research analyst Lucas Zhong said.
On the other hand, Zhong said that Apple is facing a "bottleneck" in the Chinese market because its goal is to "maintain stable retail prices and protect the profits of channel partners."
Canalys believes that the localization of "Apple Intelligence" services in China will be an important measure in the next 12 months, as Chinese brands are actively integrating generative AI into their products.
Chinese brands dominate.
From April to June, driven by strong online and offline sales during the "618" e-commerce festival, Vivo regained its top position with a market share of 19% and shipments of 13.1 million units. Oppo, with the launch of the new Reno 12 series, retained its second position with 11.3 million units. Honor ranked third with a shipment of 10.7 million units, a year-on-year increase of 4%; Huawei ranked fourth with a market share of 15% and shipments of 10.6 million units, and it did not make the top five last year. After the launch of the Mate 60 smartphone, Huawei's sales recovered in China.
It is worth mentioning that Canalys said that Xiaomi became the dark horse of the second quarter with the attention it received from the first electric car Su7. Hardware configuration and price are still the most attractive advantages of Xiaomi for consumers, and shipments in the quarter increased by 16.5% year-on-year, successfully squeezing out Apple and ranking fifth.
According to Canalys' report, overall, China's smartphone market grew 10% year on year in the second quarter, with shipments exceeding 70 million units.
According to Canalys' report, the overall Chinese smartphone market grew by 10% year-on-year in the second quarter, with shipments exceeding 70 million units.
Editor/Lambor