Apple’s foothold in the Chinese smartphone market has weakened as iPhone sales dropped by 19% in the first quarter of 2024, while Huawei surged ahead with a remarkable 70% growth, according to recent data from Counterpoint’s Market Pulse service. This shift in market dynamics is attributed to a combination of factors, including Huawei’s return with its high-end 5G-enabled Mate 60 series and Apple’s subdued performance in the region.
Huawei’s Comeback Shakes the Market
Despite facing significant US sanctions since 2019, Huawei’s resurgence has been nothing short of impressive. Its new Mate 60 series, featuring advanced technology and a 5G chipset, has resonated with Chinese consumers, enabling the brand to reclaim a significant share in the premium segment. This revival has pushed Huawei to become the fourth-largest smartphone maker in China, while Apple, now in third place, has felt the impact of Huawei’s comeback.
Apple’s Strategy for Recovery
Despite the setback, Apple is exploring strategies to regain ground in China. Senior Analyst Ivan Lam from Counterpoint suggests that Apple could see a rebound thanks to aggressive discounts, the launch of flagship devices in new colors, and the introduction of artificial intelligence features at the upcoming Worldwide Developers Conference (WWDC) in June. These initiatives could attract customers and potentially boost sales, but Huawei’s dominance in the premium segment remains a challenge.
Overall Smartphone Market Outlook
Beyond the battle between Apple and Huawei, the broader Chinese smartphone market is showing signs of recovery. According to Counterpoint, overall smartphone sales in China grew by 1.5% year-on-year in the first quarter, marking the second consecutive quarter of positive growth. As Chinese brands continue to innovate with AI-enabled features, there’s potential for further growth in the coming months.
For more insights into the Chinese smartphone market and detailed statistics, visit Counterpoint’s Market Pulse service.