This trend was driven by Chinese consumers opting for alternatives among premium smartphone brands, highlighting a significant shift in market dynamics.
During this period, the overall Chinese smartphone market saw a modest increase of 1.5% in year-over-year sales, marking it as the second consecutive quarter of growth. Notably, local manufacturers led by Huawei have contributed substantially to this growth. Huawei, in particular, recorded a significant sales increase of 69.7% from the previous year, buoyed by the release of its Mate 60 series. This new lineup has been crucial in reinforcing Huawei’s position in China’s premium smartphone segment, which typically features devices priced above $600.
Conversely, Apple’s performance in the market told a different story. The company’s sales figures saw a sharp decline of 19.1% compared to the same quarter last year. Industry analysts attribute this downturn to the resurgence of Huawei, which has posed a significant competitive threat to Apple, especially in the premium sector where the two giants vie directly for consumer favor.
Counterpoint Research suggests that Apple may see a revitalization in its market share with the introduction of new iPhone models that are expected to feature fresh color options and enhanced AI capabilities. The overall projection for the smartphone market in China remains cautiously optimistic, with expectations leaning towards low single-digit growth throughout the remainder of 2024.
