Chinese tech giant Huawei has witnessed a staggering 69.7% surge in smartphone sales in China during the first quarter of this year, while Apple experienced a significant decline of 19.1% in iPhone sales, according to market research firm Counterpoint Research. The surge in Huawei’s sales can be attributed to the successful launch of its flagship smartphone, the Mate 60, which features a high-end chip that supports 5G mobile connectivity.
Huawei’s success comes after facing challenges due to sanctions imposed by the US in 2019, which severely impacted its access to technology and nearly eradicated its smartphone business. However, the company has made a remarkable comeback, currently occupying the fourth position in China’s smartphone market, while Apple holds the third position.
Counterpoint’s senior research analyst, Ivan Lam, highlighted that Apple’s sales were subdued during the quarter due to Huawei’s resurgence in the premium segment. Additionally, replacement demand for Apple has been relatively subdued compared to previous years. However, Lam suggests that Apple has the potential for recovery in China by introducing new color options, offering aggressive discounts, and presenting new artificial intelligence (AI) features at its upcoming Worldwide Developers Conference (WWDC) in June.
Overall, China’s smartphone market experienced a 1.5% year-on-year growth in the first quarter, marking the second consecutive quarter of positive growth. Counterpoint anticipates low single-digit year-on-year growth for the industry in 2024. The research firm predicts that the integration of AI features in Chinese smartphone makers’ devices will fuel renewed demand for new mobile phones. This is evident with companies like Xiaomi and Oppo incorporating Qualcomm’s Snapdragon 8 Gen 3 processor, specifically designed for AI applications, in their latest flagship devices. Huawei spinoff Honor also showcased an AI-powered eye-tracking feature in its Magic 6 Pro smartphone, allowing users to control a car using their eyes. Counterpoint further suggests that Chinese smartphone companies will increasingly adopt AI advancements in their mid-price range phones going forward.
Frequently Asked Questions – Huawei’s Surge in Smartphone Sales in China
1. What was the sales growth percentage for Huawei and Apple in China during the first quarter?
Huawei witnessed a staggering 69.7% surge in smartphone sales, while Apple experienced a decline of 19.1% in iPhone sales.
2. What contributed to Huawei’s sales growth?
Huawei’s sales growth can be attributed to the successful launch of its flagship smartphone, the Mate 60, which features a high-end chip that supports 5G mobile connectivity.
3. How has Huawei overcome challenges in its smartphone business?
Despite facing sanctions from the US that severely impacted its access to technology and nearly eradicated its smartphone business, Huawei has made a remarkable comeback in China’s smartphone market.
4. What is the current position of Huawei in China’s smartphone market?
Huawei currently occupies the fourth position in China’s smartphone market, while Apple holds the third position.
5. Why were Apple’s sales subdued during the quarter?
Apple’s sales were subdued due to Huawei’s resurgence in the premium segment, and replacement demand for Apple has been relatively subdued compared to previous years.
6. How can Apple potentially recover in China?
Ivan Lam of Counterpoint Research suggests that Apple can potentially recover in China by introducing new color options, offering aggressive discounts, and presenting new artificial intelligence (AI) features at its upcoming Worldwide Developers Conference (WWDC) in June.
7. What was the overall growth of China’s smartphone market in the first quarter?
China’s smartphone market experienced a 1.5% year-on-year growth in the first quarter, marking the second consecutive quarter of positive growth.
8. What is Counterpoint Research’s prediction for the industry’s growth in 2024?
Counterpoint Research predicts low single-digit year-on-year growth for the industry in 2024.
9. How will AI features in Chinese smartphones fuel renewed demand?
Counterpoint Research anticipates that the integration of AI features in Chinese smartphone makers’ devices will fuel renewed demand for new mobile phones. Companies like Xiaomi, Oppo, and Huawei spinoff Honor are incorporating AI advancements in their latest flagship devices.
10. What AI advancements are being adopted in Chinese smartphones?
Companies like Xiaomi and Oppo are incorporating Qualcomm’s Snapdragon 8 Gen 3 processor, specifically designed for AI applications, in their latest flagship devices. Huawei spinoff Honor showcased an AI-powered eye-tracking feature in its Magic 6 Pro smartphone, allowing users to control a car using their eyes.
Definitions:
– Sanctions: Restrictions or penalties imposed by one country on another, often for political or trade reasons.
– Premium segment: The higher-priced and more advanced products or services offered in a particular market.
– Replacement demand: The demand for a product by existing customers who are replacing their old or outdated version.
– Worldwide Developers Conference (WWDC): An annual conference held by Apple for developers, where new software, hardware, and technologies are announced.
Related Links:
– Counterpoint Research