IDC: Apple’s market share in China has fallen out of the top five, which are now entirely occupied by Chinese manufacturers.
According to IDC’s preliminary market share data for the second quarter of 2024, China’s smartphone shipments reached 71.6 million units, representing an increase of 8.9% compared to the same period last year. However, what is even more surprising is that Apple, which was already struggling, has dropped out of the top five, leaving all the spots to Chinese manufacturers. This marks the first time in four years that Apple has not made it into the top five. It appears that the sales spike in April was just a temporary anomaly.
According to IDC data, the market shares of the top five brands are quite close: vivo at 18.5%, Huawei at 18.1%, OPPO at 15.7%, Honor at 14.5%, and Xiaomi at 14%. Nonetheless, when evaluating year-over-year increases or decreases, significant differences emerge. Vivo and Xiaomi both saw double-digit growth, with increases of 17.1% and 16.5%, respectively; Huawei’s shipments surged by 50.2%, maintaining the momentum from the first quarter. In contrast, although Oppo and Honor remain among the top five, their shipments declined by 2.8% and 3.7% year-over-year, resulting in a decrease in their market shares as well.
IDC China smartphone market
While IDC did not specify Apple’s market share, it noted a year-on-year decline of 3.1%. IDC’s analysis suggests that amid China’s cooling economy, mobile phones are viewed as everyday necessities; however, consumers are tending to gravitate towards two extremes in their purchasing decisions: either opting for mid-range models that prioritize cost-effectiveness or continuing to buy high-end models, though with a longer replacement cycle. Both trends pose challenges for Apple. Additionally, IDC analysts pointed out that the previously overlooked second-hand mobile phone market may become more vibrant in the future, further affecting sales of high-priced new phones.
Canalys China mobile phone market Q2 analysis report
In addition to IDC, other organizations such as Canalys and Counterpoint have also released their Q2 sales reports for the Chinese market. Vivo consistently ranks first across these lists, though the positions of other brands have changed. Apple has also fallen out of the top five according to Canalys’ data. While it ranks second on Counterpoint’s list, its market share only has a slight edge over the manufacturers behind it.
Counterpoint China Mobile Phone Market Q2 Report
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Apple’s Declining Market Share in China: A Wake-Up Call for the Tech Giant
China’s Smartphone Market Overview
According to IDC’s preliminary second quarter 2024 market share data, China’s smartphone shipments reached 71.6 million units, marking an 8.9% increase year-on-year. However, a shocking revelation emerged — Apple has fallen out of the top five smartphone brands in China for the first time in four years. This dramatic shift highlights the growing dominance of local Chinese manufacturers in a rapidly evolving tech landscape.
Market Landscape: Top 5 Brands
The current top five smartphone manufacturers in China are:
- Vivo: 18.5%
- Huawei: 18.1%
- OPPO: 15.7%
- Honor: 14.5%
- Xiaomi: 14%
Year-on-Year Comparison
While the market share percentages of these companies are close, the year-on-year changes present a stark contrast:
- Vivo: +17.1%
- Xiaomi: +16.5%
- Huawei: +50.2%
- OPPO: -2.8%
- Honor: -3.7%
As noted, both Vivo and Xiaomi achieved double-digit growth, while OPPO and Honor suffered declines. Notably, Huawei’s impressive shipment surge reflects its growing strength in the competitive environment.
The Downward Trend for Apple
Although IDC did not specify Apple’s exact market share, it confirmed a 3.1% year-on-year decline. Analysts attribute this to the cooling Chinese economy, where consumer purchasing behaviors are leaning towards mid-range models emphasizing cost-effectiveness, or high-end models that consumers prefer to keep for longer periods. This trend creates hurdles for Apple, traditionally known for its premium pricing strategy.
Changing Consumer Preferences
As consumers exhibit this duality in purchasing behavior, Apple finds itself in a vulnerable position:
- Increasing interest in cost-effective smartphones hampers Apple’s market potential.
- Extended replacement cycles for high-end phones reduce new purchase frequency.
Furthermore, IDC analysts suggest that the second-hand smartphone market, previously overlooked, is anticipated to gain traction. This trend might amplify price sensitivity, further complicating Apple’s market presence in China.
Insights from Other Market Research Firms
Insights from additional market research firms, such as Canalys and Counterpoint, reinforce IDC’s findings. In Canalys’ statistics, Apple also slipped from the top five manufacturers. Counterpoint’s data places Apple in second position, albeit with a minimal margin over the competition.
Current Market Positioning
Market Share Table
| Brand | Market Share (%) | Year-on-Year Growth (%) |
|---|---|---|
| Vivo | 18.5 | +17.1 |
| Huawei | 18.1 | +50.2 |
| OPPO | 15.7 | -2.8 |
| Honor | 14.5 | -3.7 |
| Xiaomi | 14 | +16.5 |
| Apple | Data Unavailable | -3.1 |
Future Outlook and Strategic Recommendations
The challenging market landscape calls for Apple to reconsider its strategies in China. Here are some recommendations:
- Enhance Cost-Effectiveness: Introduce more competitively priced models that appeal to budget-conscious consumers.
- Focus on Value Proposition: Leverage unique features and superior customer service as selling points.
- Revitalize Second-Hand Market Engagement: Explore partnerships or programs that facilitate the buying and selling of certified pre-owned devices.
Success in the Chinese market will require Apple to pivot and adapt its strategies to meet the new consumer realities in a post-pandemic economy.
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