iPhone gross sales in China – the world’s largest smartphone market – slipped by 19.1 % in Q1 year-over-year whereas many home manufacturers rose, pushing Apple from first to 3rd place.
Apple’s decline got here regardless of a rising Chinese language smartphone market, which shifted 1.5 % extra models year-over-year and 4.6 % extra quarter-to-quarter, in line with Counterpoint Analysis.
“Q1 2024 was essentially the most aggressive quarter ever, with solely 3 share factors separating the highest six gamers by way of market share,” stated Mengmeng Zhang, a senior analyst at Counterpoint Analysis.
The highest three smartphone distributors in China are actually Vivo, Honor in second, and Apple in third. Nevertheless, Vivo and Honor did not see the most important good points, with the latter seeing a decent 11.5 % enhance and Vivo largely stagnating with a lack of 0.4 %. Huawei was by far the most important winner due to 69.7 % larger gross sales than in Q1 of 2023, and its market share of 15.5 % is simply behind Apple’s 15.7 %.
In the meantime, Xiaomi clocked in an 8.6 % improve in gross sales, and Oppo’s gross sales declined by 15.5 %, the second-worst behind Apple.
Market share between the six greatest manufacturers in China are actually a lot tighter than they had been in Q1 of 2023, which noticed a ten level hole between Apple and Huawei, respectively the most important and smallest manufacturers on the time.
One of many main causes China’s homegrown cellphone manufacturers did so properly was as a result of they dominate the decrease finish of the market. “Vivo gained the highest spot this quarter with 17.4 % share pushed by robust gross sales of the Y35 Plus and Y36 fashions within the low-end section and the S18 within the mid-end section,” Counterpoint Analysis’s Ivan Lam stated.
In the meantime, Huawei’s high-end smartphones just like the Mate 60 are placing stress on Apple from the opposite facet of the market. “Apple’s gross sales had been subdued in the course of the quarter as Huawei’s comeback has instantly impacted Apple within the premium section,” Lam stated.
Huawei’s efficiency would possibly name into query Commerce Secretary Gina Raimundo’s assertion that Huawei cannot produce its 7nm Kirin 9000S SoCs at scale. Nevertheless, it isn’t clear how a lot of a revenue Huawei is popping on these 7nm chips, that are reportedly made utilizing deep ultraviolet slightly than excessive ultraviolet expertise, one thing that might significantly influence yields and thus price.
Chinese language New 12 months boosted China manufacturers, and Apple might bounce again
The report additionally identifies the Chinese language New 12 months celebrations as a key motive why Apple misplaced a lot floor, significantly in Q1. “The gross sales promotions in the course of the Chinese language New 12 months festivities had been the most important progress driver,” affiliate director Ethan Qi stated. “The common weekly gross sales in the course of the 4 weeks main as much as the Chinese language New 12 months noticed a sturdy progress of 20 % when in comparison with a standard week.”
Clearly, Chinese language New 12 months lasts for a really small a part of the 12 months, and should solely quickly suppress iPhone gross sales within the nation. Counterpoint Analysis already sees proof that iPhone gross sales are ticking again up, as Lam stated: “We’re seeing sluggish however regular enchancment from week to week, so momentum may very well be shifting.”
“For the second quarter, the opportunity of new colour choices mixed with aggressive gross sales initiatives might convey the model again into constructive territory; and naturally, we’re ready to see what its AI options will supply come WWDC in June,” Lam continued.
Although, Reg readers should not count on Apple or Tim Prepare dinner to foretell they will be again within the inexperienced in China any time quickly; they solely simply settled a $490mn lawsuit over the past time they claimed iPhone gross sales had been good in China once they very a lot weren’t. ®