The smartphone market in China saw a significant shift in power dynamics in the first quarter of 2024. Huawei, the Chinese tech giant, reclaimed the top spot after 13 quarters, according to the latest report by analytics firm Canalys. Meanwhile, Apple, the American tech titan, experienced a notable setback.
Huawei reclaimed the top spot with a strong performance, securing a commanding 17% market share. The company delivered 11.7 million smartphones in the quarter, driven by the popularity of its Mate and nova series. This impressive achievement represents a remarkable 70% increase from a year ago, highlighting Huawei’s resilience in the face of challenges, particularly against U.S. sanctions.
Innovation and Localization
Huawei’s success is greatly attributed to its strategic emphasis on innovation and localization. The recent release of the 5G Mate 60 Pro, featuring a domestically produced 7-nanometer processor designed specifically for the local market, showcases the company’s dedication to utilizing cutting-edge semiconductor manufacturing capabilities. This not only highlights Huawei’s technological expertise but also showcases its skill in navigating complex geopolitical landscapes.
Additionally, Huawei’s expansion into the operating system domain with HarmonyOS has strengthened its standing even more. This move has disrupted the dominance of Android and iOS in Mainland China, providing consumers with a more attractive option. The ongoing growth of HarmonyOS signals a fresh era in the Chinese smartphone industry, characterized by heightened rivalry and creativity.
The Decline of Apple
As Huawei celebrates its success, OPPO claims the second spot with impressive sales of its Reno 11 series, totaling 10.9 million units. HONOR, vivo, and Apple, on the other hand, experienced a decrease in sales, securing the third, fourth, and fifth positions, respectively.
HONOR saw an impressive 9% year-on-year growth, shipping 10.6 million units to claim a 16% market share. Conversely, vivo experienced a 9% decrease, shipping 10.3 million units for a 15% share. In contrast, Apple had the largest decline among the top five players.
Apple’s Struggle
Apple has dropped to fifth place from its previous position at the top, shipping 10 million units which reflects a 25% year-on-year decline. Despite CEO Tim Cook’s efforts to strengthen Apple’s presence in China, the latest numbers present a tough situation for the company. Despite Cook’s assurances about the importance of China in Apple’s strategy and the expansion of the R&D center in Shanghai, the current outlook seems challenging.
Apple is facing a tough road ahead with a sharp decrease in iPhone sales. Projections show a 24% year-on-year decline in 2023, with even more obstacles expected in 2024. The tech giant is up against a tough challenge to regain its position in China’s cutthroat smartphone market.
