The Huawei flagship retailer and the Apple flagship retailer at Nanjing Street Pedestrian Road in Shanghai, China, Sept. 2, 2024.
Cfoto | Future Publishing | Getty Pictures
Huawei reclaimed the highest spot in China’s smartphone market within the second quarter of the yr, whereas Apple returned to development within the nation — considered one of its most crucial markets — data released by technology market analyst firm Canalys confirmed on Monday.
Huawei shipped 12.2 million smartphones in China within the three months ended June, an increase of 15% yr on yr — equating to 18% market share. It is the primary time Huawei has been the largest participant by market share in China for the reason that first quarter of 2024, in response to Canalys.
Apple, in the meantime, shipped 10.1 million smartphones within the quarter in China, up 4% yr on yr and rating fifth. It’s the first time Apple has recorded development in China for the reason that fourth quarter of 2023, Canalys mentioned.
Shipments characterize the variety of gadgets despatched to retailers. They do no equate on to gross sales however are a gauge of demand.
The numbers come forward of Apple’s quarterly earnings launch this week, with traders watching the corporate’s efficiency in China, a market the place the Cupertino big has confronted important challenges, together with intense competitors from Huawei and different native gamers similar to Xiaomi.
Huawei, which made a comeback at the end of 2023 after its smartphone enterprise was crippled by U.S. sanctions, has eaten away at Apple’s share.
Apple’s return to development in China shall be a welcome signal for traders. The U.S. tech big “strategically adjusted its pricing” for the iPhone 16 sequence in China, which helped it develop, Canalys mentioned. Chinese language e-commerce corporations discounted Apple’s iPhone 16 fashions in the course of the quarter. And Apple itself additionally increased trade-in prices for some iPhone fashions.
Canalys’ numbers again up figures released by Counterpoint Research earlier this month displaying Apple’s return to development in China.
Shares of Apple have fallen round 14.5% this yr, partly on considerations over China and geopolitical headwinds.
U.S. President Donald Trump has threatened Apple with tariffs and urged CEO Tim Cook dinner to manufacture iPhones in America, a transfer consultants have mentioned can be close to unimaginable.
In the meantime, competitors in China has intensified. Huawei has aggressively launched numerous smartphones previously yr and has began to roll out HarmonyOS 5, its self-developed working system, throughout numerous gadgets. It’s a rival to Google’s Android and Apple’s iOS.
“This transfer is anticipated to speed up the growth of its unbiased ecosystem’s consumer base, whereas additionally inserting better calls for on system compatibility and consumer expertise,” Lucas Zhong, analyst at Canalys, mentioned in a press launch.