Huawei’s rise challenges Apple’s position in Chinese market

Apple’s market share in China declined by two percentage points in the second quarter of 2024, dropping from 16% to 14%, according to data from market research firm Canalys. The drop highlights the challenges Apple faces in its third-largest market as it battles intensifying competition from rivals like Huawei.

Huawei saw a 41% year-on-year increase in smartphone shipments during the quarter, driven by the launch of its Pura 70 series. This surge has propelled Huawei back into the high-end smartphone segment, despite facing US sanctions that have restricted its access to global chip supplies. Huawei’s market share in China is projected to reach 19% in 2024, making it the top vendor.

Overall, China’s smartphone shipments rose by 10% in the quarter, with Vivo leading at 19% market share, followed by Oppo, Honor, and Huawei. Apple’s market share drop resulted in its ranking falling from third to sixth place. To combat the decline, Apple has ramped up its discounting efforts, offering significant price cuts on select iPhone models.

Despite being deemed a national security threat by American officials, Huawei’s sales have rebounded, demonstrating resilience in the face of U.S. restrictions. Analysts predict Huawei’s strong performance will continue, challenging Apple’s position in the Chinese market.