BEIJING, April 23 (Reuters) - Apple's ( AAPL ) smartphone
shipments in China tumbled 19% in the first quarter of the year,
the worst performance since 2020, as its dominance in the
high-end segment came under pressure from Huawei's new
product launches, market data showed.
Apple's ( AAPL ) share in the world's biggest smartphone market fell
to 15.7% in the first quarter from 19.7% a year earlier. That
put it almost level with Huawei, which saw sales jump 70%,
according to research firm Counterpoint.
Apple ( AAPL ) lost its crown as the biggest smartphone
seller in China to rival Vivo, sliding to third place in the
quarter, followed by Huawei whose market share jumped to 15.5%
from 9.3% a year earlier. Honor, a mass market brand spun out of
Huawei, was in second place.
"Huawei's comeback has directly impacted Apple ( AAPL ) in the
premium segment. Besides, the replacement demand for Apple ( AAPL ) has
been slightly subdued compared to previous years," said
Counterpoint analyst Ivan Lam in the press release.
"For the second quarter, the possibility of new color
options combined with aggressive sales initiatives could bring
the brand back into positive territory," Lam said, adding it is
seeing slow but steady improvement in weekly iPhone sales.
Throughout the first quarter, Apple ( AAPL ) launched campaigns
to entice consumers with discounts, including
subsidizing certain
iPhone models by as much as 1,300 yuan ($180).
Huawei last week released its Pura 70 series of high-end
phones after launching the Mate 60 series in August. The Mate 60
was seen as a comeback for the Chinese firm in the high-end
market and described as a triumph over U.S. sanctions on the
company, as the handsets contain an advanced China-made chip.
U.S. Commerce Secretary Gina Raimondo
said
on Sunday that the chip powering Huawei's flagship phone is
not as advanced as American chips, arguing it showed U.S. curbs
on shipments to the telecoms equipment giant are working.
Canadian research firm TechInsights expects overall
shipments in China this year to top 50 million units, including
10 million for the Pura 70 series. That would make Huawei the
No. 1 seller with a 19% market share, up from 12% in 2023.
In the first quarter, China's smartphone market grew
1.5%, marking the second consecutive quarter of positive growth,
according to Counterpoint.