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The overall smartphone market in China saw a 10 per cent year-on-year increase in shipments, with local brands like Vivo, Oppo, Honor, and Huawei seeing significant sales boosts. This broader market growth contrasted with Apple’s decline in both shipments and market share read more
 "Apple faces tough time in China because of increased competition, shipments drop 6.7% in Q2 2024")
While Apple faces intensified competition from Chinese rivals and a dip in market share and shipments, strategic localisation and upcoming product launches could help the company recover in the near future. Image Credit: Reuters
Apple’s position in the Chinese smartphone market is facing challenges as local competitors intensify their efforts. According to recent analysis from Canalys, iPhone shipments in China dropped 6.7 per cent in the second quarter of 2024 compared to the same period in 2023.
In numbers, Apple shipped 9.7 million units in Q2 2024, down from 10.4 million in Q2 2023. This decline has impacted Apple’s market share, which fell from 16 per cent to 14 per cent, causing it to drop from third to sixth place in the rankings for smartphone shipments in China. Xiaomi, with 10 million shipments and a 14 per cent market share, edged out Apple.
The overall smartphone market in China saw a 10 per cent year-on-year increase in shipments, with local brands like Vivo, Oppo, Honor, and Huawei seeing significant sales boosts. This broader market growth contrasted with Apple’s decline in both shipments and market share.
Globally, Apple also experienced a slight dip in market share. A report from July 15 indicated that Apple’s global market share for Q2 fell from 16.6 per cent in 2023 to 15.8 per cent in 2024. Conversely, Chinese manufacturers enjoyed growth worldwide; Xiaomi’s share increased from 12.4 per cent to 14.8 per cent, while Vivo’s share rose from 7.9 per cent to 9.1 per cent.
One of the reasons behind the increased competitiveness of Chinese vendors is their localized supply chains, which offer a strategic advantage. Apple, on the other hand, is encountering supply chain bottlenecks in mainland China. Canalys analyst Lucas Zhong noted that Apple’s current strategy focuses on maintaining a healthy inventory level, stabilizing retail prices, and protecting the margins of channel partners.
Despite these challenges, there is potential for Apple to rebound. Localizing Apple Intelligence services for the Chinese market is highlighted as a crucial task for the company over the next year. Additionally, Apple’s performance in the second quarter could be partly attributed to seasonal factors, as it is relatively distant from the company’s fall product releases.
While Apple faces intensified competition from Chinese rivals and a dip in market share and shipments, strategic localisation and upcoming product launches could help the company recover in the near future.
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English (US) ·