Apple Market Share in China Declines Amid Rising Competition

Apple continues to face challenges in gaining a strong foothold in the Chinese smartphone market. Recent reports from Canalys, International Data Corp (IDC), and Counterpoint Research indicate that Apple has fallen out of China’s top five smartphone shippers during the second quarter.

This decline is attributed to increased competition from Chinese brands like Vivo, Huawei, and Xiaomi, which are experiencing growth in shipments and demand.

Apple Market Share and Sales:

According to the report by Counterpoint Research, Apple’s market share by sales dropped to 15.5% in the second quarter, down nearly 2% compared to the same period in 2023. This decline comes despite a brief shipment surge in May, which initially suggested that Apple was gaining ground in the Chinese market.

Apple’s latest earnings report from May revealed that Greater China accounted for 18% of its $91 billion revenue in the last quarter, marking an 8% decline from the previous year. This performance underscores Apple’s challenges in maintaining its market share amidst strong local competition.

Future Outlook by Apple:

Apple will likely address these challenges and its performance in China during its upcoming earnings call on August 1. The company must guide the competitive landscape and address questions about its strategy in one of the world’s largest smartphone markets.