- Apple shipped 10.1 million smartphones in the quarter in China, up 4% year on year, Canalys data showed.
- Apple has faced a number of headwinds in China with rising competition from local players such as Huawei and Xiaomi.
- Huawei reclaimed the No. 1 position in China’s smartphone market for the first time since the first quarter of 2024.
According to data provided on Monday by technology market research firm Canalys, Apple resumed growth in one of its most important markets in China, while Huawei regained its leading position in the country’s smartphone market in the second quarter of this year.
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In the three months ending in June, Huawei exported 12.2 million handsets to China, representing an 18% market share increase and a 15% year-over-year increase. According to Canalys, this is the first time since the first quarter of 2024 that Huawei has held the largest market share in China.
Apple, on the other hand, shipped 10.1 million smartphones in China during the quarter, placing fifth and up 4% year over year. According to Canalys, this is the first time Apple has seen growth in China since the fourth quarter of 2023.
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The quantity of gadgets shipped to merchants is represented by shipments. They are a measure of demand rather than a direct correlation to sales.
Investors are keeping a close eye on Apple’s performance in China, where the Cupertino titan has encountered numerous difficulties, including fierce competition from Huawei and other regional firms like Xiaomi. The figures are released ahead of Apple’s quarterly earnings report this week.
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Apple’s market share has been eroded by Huawei, which returned at the end of 2023 after U.S. sanctions damaged its smartphone industry.
Investors will be encouraged by Apple’s return to growth in China. In China, the American tech giant “strategically adjusted its pricing” for the iPhone 16 series, which aided in its expansion, according to Canalys. During the quarter, Apple’s iPhone 16 models were lowered by Chinese e-commerce companies. Additionally, Apple raised the trade-in value for a certain iPhone models.
According to data provided earlier this month by Counterpoint Research, Canalys’ findings support Apple’s return to growth in China.
This year, Apple’s stock has dropped about 14.5%, in part due to geopolitical challenges and worries about China.
Although experts say it would be nearly impossible, U.S. President Donald Trump has threatened Apple with taxes and encouraged CEO Tim Cook to manufacture iPhones in the United States.
In the meantime, competition has been more fierce in China. In the past year, Huawei has aggressively introduced a number of smartphones and begun distributing its in-house operating system, HarmonyOS 5, across a range of gadgets. It competes with Apple’s iOS and Google’s Android.
According to Canalys analyst Lucas Zhong, “this move is expected to accelerate the expansion of its independent ecosystem’s user base, while also placing greater demands on system compatibility and user experience,” the company said in a news release.
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