Apple’s Market Share Declines in China Amidst Rising Competition
Apple’s market share in China has declined significantly, dropping by two percentage points to 14% in Q2 2024, down from 16% in the same quarter last year. This decline is largely attributed to heightened competition from domestic rivals, notably Huawei, which experienced a remarkable 41% year-on-year increase in smartphone shipments during the same period, driven by the successful launch of its Pura 70 series in April.
Consequently, Apple has slipped from the third to the sixth position in the Chinese smartphone market. The overall smartphone market in China grew by 10% during the quarter, with Vivo, Oppo, Honor, and Huawei capturing 19%, 16%, 15%, and 15% market shares respectively. This marks the first time that domestic manufacturers have occupied all top five positions in the Chinese market, signaling a shift in consumer preference towards local brands.
In response, Apple has intensified its discounting strategies, launching a campaign in May offering price reductions of up to 2,300 yuan (approximately $319) on select iPhone models. Analysts predict that Huawei’s strong performance is set to continue throughout the year, with projections indicating that its overall smartphone shipments in China could exceed 50 million units in 2024, potentially positioning it as the leading vendor with a 19% market share.
This evolving competitive landscape suggests that Apple must adapt its strategies to sustain its presence in the Chinese market, focusing on optimizing channel management and potentially localizing its services to better meet consumer expectations and preferences.
