New information from Counterpoint Analysis reveals important shifts in China’s smartphone market in the course of the first quarter of 2024, with Huawei rising as a serious winner whereas Apple confronted notable challenges.
In line with Counterpoint’s Market Pulse Service, China’s total smartphone gross sales noticed a modest 1.5% year-on-year progress in Q1 2024, marking a second consecutive quarter of optimistic progress. Notably, Huawei skilled a outstanding 69.7% year-on-year enhance in market share, solidifying its place out there. This progress was attributed to Huawei’s profitable launch of the 5G-capable Mate 60 sequence and its enduring model status, significantly within the premium phase priced above $600. In distinction, Apple witnessed a 19.1% year-on-year decline in market share throughout the identical interval, partly attributable to Huawei’s features on this phase.
Honor, one other main participant, additionally noticed a optimistic quarter with an 11.5% year-on-year progress in Q1. This was fueled by the recognition of fashions just like the X50 and Play 40, in addition to an growth in offline gross sales channels.
Counterpoint Senior Analyst Mengmeng Zhang famous that Q1 2024 was intensely aggressive, with solely a 3% distinction separating the highest six gamers when it comes to market share. Zhang attributed this competitors to the strategic advertising and marketing and promotional efforts in the course of the festive season, significantly by Chinese language OEMs providing cost-effective smartphones focused on the low-end phase.
Trying forward, Counterpoint estimates low single-digit year-on-year progress for China’s smartphone market in 2024. Analysts anticipate smartphone producers to proceed exploring new AI functions, significantly specializing in mid-range units.
Regardless of Apple’s latest setbacks in China, Senior Analysis Analyst Ivan Lam expressed optimism a couple of potential restoration, pointing in direction of forthcoming initiatives resembling new colour choices and aggressive gross sales methods. Lam additionally highlighted anticipation for Apple’s AI options anticipated to be unveiled at WWDC in June, which may considerably affect the model’s trajectory out there.