Apple Inc’s market share in China shrank by two percentage points in the second quarter of this year, as the tech giant faced intensifying competition from rivals like Huawei Technologies Co (華為), according to data from market research firm Canalys.
The decline underscores the difficulties the US tech giant faces in its third-largest market.
Huawei’s smartphone shipments surged 41 percent year-on-year in the quarter, bolstered by the launch of its new Pura 70 series in April.
Photo: Samsul Said, Bloomberg
The Canalys data, while not providing specific shipment figures for Apple, showed that the company’s market share in China dropped to 14 percent in the quarter, a decrease from 16 percent a year earlier.
As a result of this decline, Apple’s ranking in the Chinese smartphone market fell from third to sixth place.
Overall, China’s smartphone shipments rose by 10 percent in the second quarter, Canalys said. Vivo Communication Technology Co (維沃) was the top vendor with a share of 19 percent, followed by Oppo Mobile Telecommunications Corp (歐珀), Honor Terminal Co (榮耀) and Huawei with 16 percent, 15 percent and 15 percent, respectively.
“Domestic manufacturers have demonstrated market leadership, occupying the top five positions in the mainland Chinese market for the first time in history,” Canalys research analyst Lucas Zhong (鍾曉磊) said.
“On the other hand, Apple faces growth pressure in the Chinese market and is actively focusing on optimizing channel management.”
Huawei made a comeback to the high-end smartphone segment in August last year with the release of a device powered by a domestically-made chip, defying US sanctions that have cut off its access to the global chipset supply chain.
In an effort to boost sales, Apple has ramped up its discounting efforts this year to entice consumers. The US company launched an aggressive campaign in May, doubling the scale of an earlier promotion in February and offering price cuts of up to 2,300 yuan (US$318.84) on select iPhone models.
Analysts expect Huawei’s strong performance to continue throughout the year. Canadian research firm TechInsights projected earlier this year that Huawei’s overall smartphone shipments in China will exceed 50 million units this year, with the Pura 70 series accounting for 10 million of those shipments.
That would make Huawei the No. 1 seller with a 19 percent market share, up from 12 percent last year, TechInsights has said.
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