Huawei is experiencing a strong resurgence in China and is close to surpassing Apple in the world's biggest smartphone market. The Shenzhen-based company, known for being at the center of the growing tensions between the US and China, achieved a 70% increase in smartphone sales in China during the first quarter. In contrast, Apple saw a decline of over 19% in its sales during the same period, as reported by Counterpoint Research.
Apple's sales were not as strong this quarter because Huawei's comeback has had a direct impact on Apple in the premium segment, according to Ivan Lam, a senior research analyst at Counterpoint.
In the first quarter of 2023, Apple was leading China's smartphone market with almost 20% share. However, in the first three months of this year, Apple has dropped to the third position. Its market share is now at 15.7%, while Huawei's share has increased to 15.5% from 9.3% last year, as reported by Counterpoint.
Apple's newest flagship store has opened in Shanghai.
Apple's newest flagship store has opened in Shanghai.
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Tim Cook is currently in China on a mission to boost iPhone sales that have been declining.
Last year, Huawei's Mate 60 Pro smartphone caught everyone's attention when the US government requested more details about its advanced processor. Industry experts were surprised by the debut of this model and wondered how Huawei managed to obtain such a chip, especially with the US imposing restrictions on China's access to foreign chip technology due to security reasons.
Counterpoint recently released data indicating that Apple's global smartphone sales dropped by 10% in the first quarter. This decline was largely attributed to a loss of momentum in China, which is Apple's second-largest market after the United States.
Apple is currently experiencing difficulties in China as Chinese consumers are increasingly opting for Chinese brands over Apple products. This shift in consumer preference is posing a challenge for the tech giant in the world's second-largest economy.
Overall smartphone sales in China grew 1.5% in the first quarter, according to Counterpoint. Local smartphone makers Vivo and Honor were the top two brands by market share.
Editor's P/S:
Huawei's remarkable resurgence in China, coupled with Apple's decline, is a testament to the shifting dynamics of the global smartphone market. Huawei's ability to innovate and adapt despite geopolitical challenges has propelled it to the forefront of the Chinese market, while Apple's struggles reflect the growing dominance of Chinese brands in their home market.
This trend underscores the importance of localization and understanding local consumer preferences in the global technology landscape. As Chinese consumers increasingly prioritize domestic brands, international companies like Apple face the challenge of adapting their strategies to remain competitive in this evolving market.
