East Asia Apple Captures the Top Spot in the China Smartphone Market in 2023 for the First Time Ever, Despite the Overall Market Dropping 5.0%, According to IDC

[Hamartia Antidote]

Apple Captures the Top Spot in the China Smartphone Market in 2023 for the First Time Ever, Despite the Overall Market Dropping 5.0%, According to IDC Tracker

IDC examines consumer markets by devices, applications, networks, and services to provide complete solutions for succeeding in these expanding markets.

www.idc.com

A shift of power that we saw on the worldwide stage also happened in China, the largest smartphone market globally. Apple became the leading smartphone company in China for the first time with record high market share of 17.3% in 2023. According to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker, China smartphone shipments totaled 271.3 million units in 2023, which was a decline of 5.0% compared to 2022. This was the lowest volume in a decade, stemming from a soft economic recovery and weak consumer sentiment.

While the Chinese smartphone market remains challenged, it is moving towards recovery with the fourth quarter of 2023 (4Q23) delivering year-over-year growth of 1.2% on shipments of 73.6 million units, marking the end of ten consecutive quarters of year-over-year decline. The resilient high-end consumers in the tier 1-3 cities were the key drivers, fueling demand for flagship products. Meanwhile, demand for low- to mid-range devices remained weak, impeding the overall growth of the market as they represent over half the smartphone market in China.

"Apple's climb to the top spot in 2023, especially in light of renewed competition from Huawei and the soft spending sentiment, marks a tremendous success for Apple," said Arthur Guo, senior research analyst in Client System Research for IDC China. "Apple achieved this thanks to timely price promotions in its third-party channels, which stimulated demand. Meanwhile, Honor maintained its number 2 position thanks to improvement in its channel partnerships and a well-rounded product strategy, capturing the high end with its successful foldable lineup and the low-to-mid range with several popular models."

"One key highlight we shouldn't miss in 4Q23 was the return of Huawei to the Top 5 ranking after more than two years," said Will Wong, senior research manager for Client Devices at IDC Asia/Pacific. "This will only intensify the competition as no vendors will want to lose a top 5 position in the world's largest smartphone market."

China Smartphone Market, Top 5 Companies, 2023 and 2022 Market Share and Year-Over-Year Growth
Company	2023 Market Share	2022 Market Share	2023/2022 Growth
1. Apple	17.3%	16.8%	-2.2%
2. Honor	17.1%	18.1%	-10.3%
3. OPPO	16.7%	17.5%	-9.4%
4. vivo	16.5%	18.6%	-15.5%
5. Xiaomi	13.2%	13.6%	-8.5%
Others	19.1%	15.3%	+19.0%
Total	100.0%	100.0%	-5.0%
Source: IDC Worldwide Quarterly Mobile Phone Tracker, Q4 2023

China Smartphone Market, Top 5 Companies, Q4 2023 and Q4 2022 Market Share and Year-Over-Year Growth
Company	4Q23 Market Share	4Q22 Market Share	4Q23/4Q22 Growth
1. Apple	20.0%	20.6%	-2.1%
2. Honor	16.8%	17.1%	-0.9%
3. vivo	15.7%	17.4%	-8.4%
4. Huawei	13.9%	10.3%	+36.2%
5. OPPO	13.7%	16.5%	-16.1%
Others	20.0%	18.1%	+11.9%
Total	100.0%	100.0%	+1.2%
Source: IDC Worldwide Quarterly Mobile Phone Tracker, Q4 2023

Notes:

• Data are preliminary and subject to change.
• Company shipments are branded device shipments and exclude OEM sales for all vendors.
• The "Company" represents the current parent company (or holding company) for all brands owned and operated as a subsidiary.
• Figures represent new shipments only and exclude refurbished units.

 

[Beijingwalker]

China's cellphone market is more diversified and every phonemaker is having a smaller share, Iphone sales are actyually declining fast in China

Apple iPhone sales in China fell more than 30% during first week of 2024: Analysts

Apple's iPhone sales in China are down more than 30% year over year, while competitors have "remained much stronger," Jefferies analysts said.

www.cnbc.com

https://www.reuters.com/technology/apple-smartphone-shipments-china-shrink-21-fourth-quarter-idc-2024-01-25/

 

[Beijingwalker]

Maybe with one exception based on OP chart. This increase is crazy.

4. Huawei

13.9%

10.3%

+36.2%

 

[Hamartia Antidote]

iPhone 14 launch lines in China

 

[Hamartia Antidote]

iPhone 15 launch lines in China

 

[Beijingwalker]

Apple products provide jobs and tax money for China, we also hope it goes well

 

[Beijingwalker]

Apple's China sales tumble highlights waning clout as local brands gain​

By Yelin Mo and Brenda Goh
February 2, 202410:39 PM GMT+8

An Apple logo is seen at an Apple store in Pudong, the financial district of Shanghai February 29, 2012. REUTERS/Carlos Barria/File Photo Acquire Licensing Rights, opens new tab

BEIJING, Feb 2 (Reuters) - Apple's (AAPL.O), opens new tab weak China sales performance may have shocked investors, but customers and analysts have been noting the rising challenges the company faces in its third-largest market.

Intensifying competition from domestic rivals, coupled with longer upgrade cycles as consumers spend more cautiously amid an economic slowdown, have stunted Apple's China growth, with sales there nosediving by 13% in the quarter ending in December to $20.8 billion and missing estimates of $23.5 billion.

Shares of the company dipped about 3% in early trading on Friday, following the disappointing China sales.

"Apple's sales decline in China is not surprising given the strong competition it faced from local brands like Huawei and Xiaomi," said Toby Zhu, an analyst with research group Canalys.

Apple did not immediately respond to a request for comment.

As the world's largest smartphone market, China is crucial to Apple's sales growth. For years, Apple has been the premium phone brand of choice in the country but the tide is now turning.

The pressure on Apple intensified in the second half of the year after Huawei's comeback in the high-end smartphone market with its Mate 60 series phones powered by a domestically-made chip.

Other leading Android brands like Xiaomi (1810.HK), opens new tab also edged into the high-end turf that Apple has traditionally dominated. Xiaomi launched its premium Mi 14 model in October, touting its long battery life and camera capabilities. It sold 1 million units within a week of launch.

Canalys' Zhu said Chinese manufacturers are gradually breaking into Apple's core price segment by introducing higher-priced foldable products.

Chinese consumers have also complained about a lack of innovation in Apple's iPhones, particularly in the design aesthetic, compared to earlier iterations.

"Another hurdle Apple needs to overcome is how it could bring more wow factors to the buyers and sustain its image as a tech pioneer. This is especially crucial when other Android vendors are now bringing foldables and AI to their products," said Will Wong, an smartphone analyst with IDC.

At the same time, Chinese customers are holding on to handsets for longer because of the economic slowdown. Consultancy Counterpoint said in June that the replacement cycle was over 40 months.

To support its Chinese sales, Apple has cut prices. A massive discounting campaign by online retailers including Alibaba and Pinduoduo in October to clear iPhone 15 stock, just a month after it was launched in the country. In January, Apple offered rare discounts on its iPhones.

The October discounting effort seemed to only stem the decline, with Apple's phone shipments dropping by just 2.1% in the final quarter of 2023, while Huawei's sales increased by 36.2%, according to data from research group IDC.

Apple will likely continue to face pressure in China going forward. Jefferies analysts predict Apple's shipments in China will decline by a double digit percentage in 2024.

"The big miss in China is concerning as it could be the start of a longer downward trend there", said Bob O'Donnell at TECHnalysis Research.

https://www.reuters.com/technology/apples-china-sales-tumble-highlights-waning-clout-local-brands-gain-2024-02-02/