Tata Group’s attempt to acquire a majority stake in Vivo’s India operations was thwarted by Apple, reportedly due to concerns about potential competition. The deal, which would have made Tata a major player in the Indian smartphone market, was also aimed at ‘Indianising’ Vivo’s operations in response to government pressure.
Results for: Smartphone Market
In a significant market shift, Apple has lost its dominance as the leading smartphone seller in China to Honor and Huawei. According to preliminary data from IDC, Apple’s market share fell to 15.6% in the first quarter of 2024 amid fierce competition and a 6.6% decline in smartphone shipments. Honor and Huawei emerged as joint leaders, with market shares of 17.1% and 17%, respectively. Despite offering price promotions, Apple was unable to counter the aggressive pricing strategies of Android manufacturers. Overall, China’s smartphone market experienced a 6.5% growth to reach 69.3 million units.
Apple’s reign over China’s high-end smartphone market faces challenges from domestic players, including the US-sanctioned Huawei Technologies. Although smartphone shipments grew 6.5% in China during the first quarter, Apple’s shipments declined from 14.7 million to 10.8 million iPhones. This drop led to a decrease in Apple’s market share from 17.8% to 15.6%, putting it behind Honor and Huawei, who captured 17.1% and 17% of the market, respectively. Despite price cuts to stimulate sales, Apple faces increasing competition in China. In the premium segment (smartphones over US$600), Apple maintains dominance but lost ground to Huawei and Honor, with its market share slipping from 70% to 58%. Huawei’s resurgence has disrupted the market balance, particularly with its 5G-enabled Mate 60 series. However, supply chain issues may hinder Huawei’s growth prospects.
Apple’s smartphone sales in China have taken a significant hit, dropping by 19.1% in the first quarter of 2024. Market research firm Counterpoint Research reported this decline in a recent analysis, outlining the challenges faced by the iPhone maker in a market where local rivals have gained traction. Huawei, a key competitor to Apple in China’s premium smartphone segment, has witnessed a remarkable resurgence, with its sales soaring by 69.7% year-on-year. This growth is attributed to the successful launch of Huawei’s 5G-capable Mate 60 series, equipped with an innovative chip. Apple’s market share in China has also been impacted, falling from first place to third, behind Chinese brands Vivo and Honor, formerly a subsidiary of Huawei. This sharp decline in Apple’s sales marks its worst performance in the Chinese smartphone market since 2020, highlighting the challenges the company faces as local competitors gain ground.
In the first quarter of 2024, Apple’s smartphone sales in China experienced a significant decline of 19.1%, whereas Huawei saw a substantial growth of 69.1%. This shift indicates Huawei’s growing threat to Apple’s dominance in the premium segment of the world’s largest smartphone market.