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China smartphone market sees shift as Huawei's Q3 sales surge 42%, while Apple's iPhone sales decline 0.3% year-over-year and Vivo tops market with 18.6% share

Apple's sales of smartphones in China suffered a minor setback in the third quarter of 2024 as it saw a decline of 0.3%, according to data from research firm IDC released on October 25. The rival Huawei, however, saw its numbers jump 42% in the world's largest smartphone market as it rebounded even more strenuously.

Apple stands in second place during the third-quarter round with a 15.6% market share. However, it fell 0.5 percentage points compared to last year. Meanwhile, Huawei ranked third in Q3 at 15.3% market share. It gained 4.2 percentage points from last year. On the other hand, Vivo ruled the market with an 18.6% market share owing to its budget-friendly mobile phones.

The tremendous rise by the Chinese titan, Huawei follows a resurgence it saw last year. As of 2023, Huawei launched its Mate 60 series making its entry into the high-end smartphone segment. Analysts say the device boasts of a locally made chip, which gives Huawei an upper hand over Apple. Continuing, the Pura 70 series this year sustained the momentum for the company as it took a direct swipe at Apple's market share position.

Consequently, multiple factors have affected the performance of Apple in China. The iPhone maker faced conditions such as curbs imposed on the use of iPhones by specific government entities. To increase market demand, Apple launched a chain of discount campaigns. The company's latest release of the iPhone 16 series on September 20 also went a long way in improving sales for Apple. According to data released by market research firm Counterpoint, first-month sales of the new iPhone 16 in China “were strong, up 20% compared with the 2023 model.”

“With its new product launch every year, Apple regained a place in the top five market rankings in China, with a market share of 15.6 per cent,” said IDC. However, the research firm added that better market promotions for its iPhones and the eventual release of the Apple Vision Pro could help position Apple even better in the market. “The demand for the iPhone 16 series is expected to gradually materialize in the future.”

Despite Apple’s woes, Chinese smartphone sales are up 3.2% year-on-year, with the number reaching 68.78 million units for the quarter. Huawei's combined innovation and important new launches by Apple illustrate the heated competition among leading brands in China's smartphone market.