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Apple has re-entered the top five smartphone brands in China, buoyed by the launch of the iPhone 16, according to new data released by the International Data Corporation (IDC) on Friday. Despite Apple’s significant return, it faces fierce competition from domestic rival Huawei, which continues its aggressive comeback in the Chinese market.
For the third quarter of 2024, Apple secured second place in China’s smartphone market share at 15.6%, closely followed by Huawei at 15.3%. However, while Apple’s market share remained relatively stable, Huawei recorded a 42% year-on-year increase in smartphone shipments, highlighting its strong recovery from recent years of U.S. sanctions. The sanctions had impacted Huawei’s access to advanced semiconductors and software, hampering its smartphone business. But with the launch of the Mate 60 and other new devices, Huawei’s growth in China has reignited, and it now stands as one of Apple’s main competitors.
In fact, Huawei’s latest innovative launch, the Mate XT trifold phone, has positioned it as a leader in foldable technology and has propelled the company to four consecutive quarters of double-digit growth. This resurgence has put additional pressure on Apple in China, one of its most significant markets globally. In the previous quarter, Apple had even slipped out of the top five in market share rankings in China, underscoring the intensity of the local competition.
In response, Apple is banking on the popularity of the iPhone 16 and the promise of new AI-powered software features under its “Apple Intelligence” suite to win over Chinese consumers. Apple Intelligence is expected to roll out in the U.S. later this fall, but Apple has not yet provided a timeline for its release in China, citing regulatory complexities.
IDC’s report also highlighted the overall market dynamics, with Vivo maintaining its lead in China at 18.6% market share, along with a 21.5% increase in shipments compared to last year. Xiaomi and Honor rounded out the fourth and fifth positions, respectively.
During his recent visit to China, Apple CEO Tim Cook met with high-ranking government officials and executives from Chinese tech firms, signaling a potential strategic push to solidify partnerships that could facilitate a smoother launch for Apple Intelligence in China.
While Apple’s position in the rankings marks a strong comeback, experts believe that the competition with Huawei and other local brands will remain fierce. Apple’s ability to compete in the world’s largest smartphone market will likely hinge on its capacity to innovate and adapt to the demands of Chinese consumers, who are increasingly drawn to AI-driven features offered by domestic brands.
