Apple’s smartphone shipments in China took a hit in the first quarter of the year, dropping by 19%, marking its worst performance since 2020. This decline in shipments was attributed to the increasing competition from Huawei, whose new product launches put pressure on Apple’s dominance in the high-end segment.
According to market data from research firm Counterpoint, Apple’s share in the Chinese smartphone market fell to 15.7% in the first quarter, down from 19.7% the previous year. This placed Apple almost on par with Huawei, which saw a significant sales increase of 70% during the same period.
As a result of this decline, Apple lost its position as the top smartphone seller in China to Vivo, slipping to third place behind Huawei. Honor, a mass-market brand spun out of Huawei, secured the second spot in the rankings.
Counterpoint analyst Ivan Lam noted that Huawei’s resurgence directly impacted Apple in the premium segment, while the replacement demand for Apple devices was lower compared to previous years. However, Lam expressed optimism for Apple’s performance in the upcoming quarter, citing the possibility of new color options and aggressive sales initiatives that could help the brand regain momentum.
Throughout the first quarter, Apple rolled out various campaigns to attract consumers, offering discounts and subsidies on certain iPhone models. In contrast, Huawei launched its Pura 70 series of high-end phones, following the success of the Mate 60 series, which was seen as a comeback for the Chinese tech giant in the high-end market.
Despite the challenges faced by Apple in China, the overall smartphone market in the country experienced positive growth of 1.5% in the first quarter, signaling a potential rebound for the industry.