Apple’s dominance in China’s high-end smartphone market faces increasing pressure from local rivals. According to new data from industry consultancy IDC, while smartphone shipments in China rose 6.5 percent to 69.3 million devices in the first quarter, Apple shipped 10.8 million iPhones, down from 14.7 million in the fourth quarter last year. This decline in shipments resulted in Apple’s market share falling from 17.8 percent to 15.6 percent, putting it behind Chinese manufacturers Honor and Huawei, who grabbed 17.1 percent and 17 percent of the market, respectively.
Apple’s loss of market share comes despite its strategy to prop up sales by cutting prices. According to IDC China vice-president Antonio Wang, Apple faces increasing competition in the Chinese market. In addition to losing ground in the overall smartphone market, Apple’s share in the premium segment, consisting of handsets priced over US$600, also dropped from 70 percent a year ago to 58 percent in the March quarter.
Huawei’s comeback has disrupted the market equilibrium, said Wang. The US-sanctioned company has seen its share in the high-end market jump to 20 percent in the past quarter from 12 percent year-on-year, primarily due to strong demand for its 5G-enabled Mate 60 series. Honor’s share also expanded steadily to reach 9 percent.
Apple is reportedly exploring a tie-up with Chinese web search and AI giant Baidu to install the latter’s Ernie chatbot on iPhones sold in China. However, it remains to be seen whether this partnership will be enough to help Apple regain lost market share and fend off the increasing competition from domestic rivals.
Globally, smartphone makers shipped a total of 289 million units in the first quarter, marking a 7.8 percent year-on-year rebound and continuing a growth trajectory for the third quarter in a row, according to IDC.
