Apple, one of the leading smartphone brands worldwide, has experienced a setback in China as it lost its position as the country’s bestselling smartphone brand. According to market research firm Counterpoint, Apple’s sales in China declined by 19.1% in the first quarter of the year, primarily due to rising competition from local manufacturers like Huawei Technologies and Vivo.
During the first quarter, Apple’s market share dropped to 15.7% from the previous 20.2%, causing the company to slip to the third position in terms of sales. It was overtaken by Vivo and Honor, securing shares of 17.4% and 16.1% respectively. Huawei, with a market share of 15.5%, recorded impressive sales growth of almost 70%, largely attributed to the successful launch of its 5G-capable Mate 60 series and the enduring appeal of its brand reputation.
Although Apple faced subdued sales during the quarter, Counterpoint’s senior research analyst, Ivan Lam, believes the company may see “slow but steady improvement” in the coming months. Lam suggests that aggressive sales initiatives and the introduction of new color options for Apple products in the second quarter could help the brand regain traction and return to positive territory.
However, Apple will encounter tough competition from Huawei’s recently launched Pura 70 series, including its high-end Pro and Ultra models. The Pura 70 series represents Huawei’s biggest flagship handset launch since the Mate 60 Pro, featuring a Chinese-made processor. With expectations of shipping over 10.4 million Pura 70 handsets and regaining the number one position in China this year, Huawei seems poised to dominate the market.
Counterpoint predicts low single-digit growth for China’s smartphone market in the coming year, a significant improvement compared to the decline experienced in previous years. This positive trend reflects the overall recovery of the Chinese smartphone market, which saw growth for the second consecutive quarter after a prolonged period of decline.
As Apple faces the challenges of competition from local rivals in China, the company must adapt and innovate to regain its position as a leading smartphone brand in the world’s largest market.
Frequently Asked Questions (FAQs)
1. Why did Apple lose its position as the bestselling smartphone brand in China?
– Apple lost its position primarily due to rising competition from local manufacturers like Huawei Technologies and Vivo.
2. How much did Apple’s sales decline in China during the first quarter?
– According to market research firm Counterpoint, Apple’s sales in China declined by 19.1% in the first quarter of the year.
3. What were the market shares of Vivo and Honor during the first quarter?
– Vivo and Honor secured market shares of 17.4% and 16.1% respectively.
4. Which factors contributed to Huawei’s impressive sales growth in China?
– Huawei’s impressive sales growth of almost 70% was largely attributed to the successful launch of its 5G-capable Mate 60 series and the enduring appeal of its brand reputation.
5. What does Counterpoint predict for China’s smartphone market in the coming year?
– Counterpoint predicts low single-digit growth for China’s smartphone market in the coming year, which marks a significant improvement compared to the decline experienced in previous years.
Key Terms and Definitions:
– Market research firm Counterpoint: A company that provides market research and analysis for various industries.
– Subdued sales: A decrease in sales or a decline in the amount or value of products sold.
– Market share: The percentage of total sales within a specific market that a company holds.
– 5G-capable: Referring to devices that can connect to and utilize 5G networks, which offer faster internet speeds and lower latency compared to previous generations.
– Flagship handset: A company’s high-end, premium smartphone model that represents its latest and most advanced technology.
Suggested Related Links:
– Apple Official Website
– Huawei Official Website
– Vivo Official Website
– Counterpoint Research Official Website