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In a historic move, Apple has secured the position of the largest smartphone vendor in China by shipments for the first time, according to new data released by the International Data Corporation (IDC) for the year 2023. Apple’s market share in China reached a record-high of 17.3%, marking a significant milestone in the world’s second-largest economy.
While Apple’s overall smartphone shipments experienced a 2.2% year-on-year decline in 2023, the company’s strategic moves, including timely price promotions in third-party channels, contributed to its success in a market characterized by soft spending sentiments. Arthur Guo, Senior Research Analyst at IDC China, emphasized the significance of Apple’s achievement amid renewed competition from Huawei.
The overall smartphone market in China witnessed a 5% decline in 2023, impacted by economic uncertainties and weak consumer spending. Despite these challenges, Apple’s success was attributed to discounts offered on the flagship iPhone 15 in the fourth quarter, with the company continuing this strategy through rare discounts on its website to maintain momentum.
Honor, a spin-off from Huawei, secured the second spot in China’s smartphone market with a 16.8% market share, followed by Vivo, Huawei, and Oppo. Counterpoint Research also reported on China’s smartphone market, predicting low single-digit year-on-year growth in 2024, marking the first year of growth since 2018.
One of the noteworthy developments in 2023 was Huawei’s return to the top five ranking in China during the fourth quarter, after more than two years outside of the leading group. Despite facing U.S. sanctions that affected its handset business, Huawei’s new phone, the Mate 60, equipped with a cutting-edge semiconductor from China’s largest chipmaker SMIC, contributed to the company’s strong performance. Huawei’s shipments grew by 36% year-on-year in the December quarter, securing a 13.9% market share and displacing Xiaomi from the top five.
The resurgence of Huawei and Apple’s groundbreaking achievement signal intensified competition in the world’s largest smartphone market, setting the stage for a dynamic landscape in the coming years.