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Apple faced a significant setback in China as its smartphone shipments plummeted by 19% in the first quarter of the year, marking its worst performance since 2020. The decline was attributed to fierce competition from Huawei's new product launches in the premium segment. Consequently, Apple's market share in China dropped to 15.7%, almost on par with Huawei, whose sales surged by 70%, according to Counterpoint.
- As a result of Huawei's resurgence and subdued replacement demand for Apple, the tech giant lost its position as the top smartphone seller in China to Vivo, slipping to third place in the quarter. Counterpoint analyst Ivan Lam noted that Huawei's comeback directly impacted Apple's performance in the premium segment. However, Lam expressed optimism for Apple's rebound in the second quarter, anticipating positive outcomes from new color options and aggressive sales initiatives. While Apple continues to grapple with market share losses globally, particularly against Android competitors like Samsung, it's intensifying efforts in China through promotional campaigns and discounts. Huawei's recent releases, including the Pura 70 series, have garnered attention, reflecting the company's resilience despite U.S. sanctions.
Why it matters
With China's smartphone market showing signs of growth, competition is expected to remain fierce as Huawei aims to consolidate its position as the top seller with a projected 19% market share this year.
