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Apple has slipped out of the top five smartphone vendors in China for the first time, according to a recent Canalys report. The company’s market share in China fell to 14% in the second quarter of 2024, down from 15% in the first quarter and 16% a year ago. This drop has placed Apple in sixth position with approximately 9.7 million units shipped.
The report highlights a shift in the Chinese market, with domestic brands now dominating the top five positions for the first time in history. Lucas Zhong, a research analyst at Canalys, noted that local vendors’ strategies and collaborations with domestic supply chains are starting to yield significant results in both hardware and software advancements. For instance, Honor’s latest Magic V3, featuring generative AI, has notably enhanced the user experience of foldable devices.
In contrast, Apple is facing challenges in stabilizing retail prices and protecting margins for its channel partners. Localization of Apple’s services, including its AI offerings, will be crucial in the coming year as Chinese brands aggressively integrate generative AI into their products.
Market Trends:
- Vivo reclaimed the top spot with 19% market share and 13.1 million units shipped, benefiting from strong sales during the “618” e-commerce festival.
- Oppo secured second place with 11.3 million units, supported by the new Reno 12 series.
- Honor, a Huawei spinoff, achieved third place with 10.7 million units shipped, reflecting a 4% year-on-year growth.
- Huawei ranked fourth with 15% market share and 10.6 million units shipped, driven by the resurgence of its Mate 60 smartphone.
- Xiaomi took the fifth position, with its debut electric car, the SU7, boosting sales of its K70 and flagship 14 series.
The overall Chinese smartphone market grew by 10% year on year in the second quarter, with shipments surpassing 70 million units.