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Apple is no longer one of the top five smartphone sellers in China, according to independent research, as the iPhone is dragged down by a soft economy, new competition, and reported government bans.<\/p>\n
Research released by Canalys<\/a> and IDC<\/a> this week measuring smartphone shipments report that Apple dropped to sixth place in China\u2019s smartphone market last quarter. Chinese brands now occupy the top of the rankings, with both firms putting Vivo in the lead. Both Canalys and IDC rank Huawei, Oppo, HONOR and Xiaomi in the top five.<\/p>\n Apple shipped 9.7 million iPhones in the second quarter, a drop from the 10.4 million shipped this time last year, according to Canalys data. Overall, China\u2019s smartphone market grew by 10% year-on-year, with shipments exceeding 70 million units.<\/p>\n Canalyst reports that Apple has 14% market share, a two percentage point decrease from the same period last year. IDC research shows a 3.1% decline in shipments, <\/strong>despite aggressive discounts<\/a> in the second quarter of the year.<\/p>\n \u201cIt\u2019s the first quarter in history that domestic vendors dominate all the top five positions,\u201d Canalys research analyst Lucas Zhong notes. \u201cChinese vendors\u2019 strategies for high-end products and their deep collaboration with local supply chains are starting to pay off in hardware and software features.\u201d<\/p>\n Analysts pointed to competition from Huawei as a reason for Apple\u2019s struggles. The U.S.-blacklisted tech company has seen a resurgence in fortunes since it released<\/a> a new premium smartphone with a domestically-produced processor almost a year ago. <\/p>\n \u201cHuawei\u2019s return did have a certain impact on Apple\u2019s performance, especially in the high-end segment,\u201d Will Wong, senior research manager for client devices research at IDC, said.<\/p>\n Xiaomi\u2019s smartphone sales surged thanks to the release of its new electric car, according to Canalys. Xiaomi started selling its new electric sedan, the SU7, from late-March.<\/p>\n The iPhone is an important moneymaker for Apple, making up just over half of its sales last year. The Greater China market, which includes Hong Kong and Taiwan represented 19% of Apple\u2019s total 2023 revenue and is Apple\u2019s third largest region by sales.<\/p>\n There\u2019s a growing divide between independent assessments of Apple\u2019s business in China and the iPhone manufacturer\u2019s own statements. Earlier this year, Apple CEO Tim Cook said that iPhone sales in China grew in the quarter ending March<\/a>, though did not provide specifics.<\/p>\n But even as Apple slips in the rankings, IDC notes that the iPhone maker is still in a better position compared to 2020. IDC estimates<\/a> Apple now has 13.6% of the Chinese smartphone market, compared to 8.3% in the third quarter of 2020.<\/p>\n<\/div>\n CEO Daily provides key context for the news leaders need to know from across the world of business. Every weekday morning, more than 125,000 readers trust CEO Daily for insights about\u2013and from inside\u2013the C-suite. Subscribe Now<\/a>.<\/div>\n<\/div>\nRecommended Newsletter:<\/strong><\/p>\n