Apple’s iPhone sales have plummeted by 19% in the first quarter of 2024, while Huawei’s smartphone sales surged by nearly 70%, signaling a dramatic shift in China’s mobile market. This unexpected change has opened new dynamics in a market once dominated by Apple, but is now seeing a robust resurgence of domestic brands.
According to a recent report by Counterpoint Research, Huawei’s near-70% growth is largely attributed to the successful launch of its Mate 60 series, which features a high-end 5G chip, overcoming the constraints of US sanctions that had previously hampered the company’s smartphone business. The Mate 60’s popularity catapulted Huawei to the fourth position in the Chinese smartphone market, edging closer to Apple, which holds the third spot.
The drop in Apple’s sales was unforeseen, given its stronghold on China’s premium smartphone segment. However, industry experts point out that Huawei’s comeback has drawn customers seeking 5G capabilities and more advanced features, aspects where Apple lagged during this period.
Despite these setbacks, industry analysts remain optimistic about Apple’s prospects in China. Ivan Lam, a Senior Analyst at Counterpoint, suggests that the company’s new initiatives and aggressive sales campaigns could help it bounce back. “The introduction of new colors, significant discounts, and anticipated AI features at Apple’s upcoming WWDC in June could play a key role in reversing the downward trend,” he notes.
Beyond Huawei, other domestic brands like Xiaomi, Oppo, and Honor have shown consistent growth, with each incorporating AI-centric features into their flagship models. These trends are reshaping the Chinese smartphone landscape, pushing global players to adapt to a more competitive environment.
As the year progresses, all eyes are on Apple’s next moves. With the Chinese smartphone market projected to grow by 1.5% year-over-year, the stakes are high. Will Apple regain its foothold, or will Huawei and other domestic brands continue their ascent? Only time will tell.