Huawei eats into Apple’s market share in China, in accordance with new analysis

The quiet launch of Huawei’s Mate 60 Professional is remodeling China’s cellphone market as customers shift to native manufacturers. Apple’s shipments tumbled 19% year-on-year within the first quarter of the 12 months, the corporate’s worst efficiency since 2020, in accordance with information from Counterpoint Analysis.

The U.S. firm now has market share of round 15.7%, down from 19.7% a 12 months in the past. The drop places Apple in third place in China’s smartphone market, behind Vivo and HONOR.

Apple’s decline contrasts with Huawei’s rise. The Chinese language smartphone maker’s gross sales within the first quarter of 2024 jumped by nearly 70%. It now has 15.5% of China’s cellphone market, placing it simply behind Apple. Counterpoint partly attributed Huawei’s development to the corporate’s 5G smartphone, giving the tech big “a massive share in the $600+ premium segment.”

HONOR, a former Huawei subsidiary spun off in 2020, is in second place after its gross sales grew 11.5% year-on-year.

Apple led the Chinese language smartphone marketplace for 2023 as a complete, forward of Vivo, Oppo and Xiaomi, in accordance with Counterpoint data,

Fierce competitors in China helped to knock Apple from its perch as the highest international vendor of smartphones final quarter, in accordance with an IDC report released last week. South Korea’s Samsung is now in first place.

Huawei’s rise

Chinese language customers could possibly be attracted by the value of Huawei’s 5G cellphone, which is cheaper than Apple’s iPhone. However Chinese language media also promoted the Mate 60 Professional, which includes a domestically-produced superior chip, as a supply of nationwide delight upon its launch final 12 months.

Huawei sold 1.6 million Mate 60 Pro handsets within the six weeks following its launch, and gross sales have remained robust since.

A resurgent Huawei is simply one of many challenges to Apple’s enterprise in China. The iPhone maker is coping with better regulatory scrutiny: Beijing reportedly informed authorities officers and staff at state-owned enterprises to cease utilizing iPhones, and regulators ordered Apple to remove several overseas packages, like WhatsApp, Threads and Sign, from its China app retailer final week on “national security concerns.”

Apple can be making an attempt to diversify its provide chain to rely much less on Chinese language suppliers. CEO Tim Prepare dinner made a whirlwind go to to Southeast Asia final week which can have been an effort to “hedge [Apple’s] supply chain bets,” analysts beforehand informed Fortune.