Huawei Surges Ahead in China’s Smartphone Market

Huawei is experiencing a remarkable resurgence in China’s smartphone market, poised to surpass Apple as the leading player in the world’s largest smartphone market.

The Shenzhen-based conglomerate witnessed a staggering 70% year-on-year growth in smartphone sales during the first quarter, contrasting with Apple’s sales decline of over 19%, as reported by Counterpoint Research.

Impact of Huawei’s Comeback:

According to Ivan Lam, senior research analyst at Counterpoint, Huawei’s resurgence directly impacted Apple’s performance in the premium segment, leading to subdued sales for the iPhone maker.

Apple, which previously held nearly 20% of China’s smartphone market share in the 1st quarter of 2023, has now slipped to the third position, with a market share of 15.7%. Meanwhile, Huawei’s market share has surged 15.5% from 9.3% the previous year.

Huawei Technological Advancements:

Huawei’s popularity soared with the launch of the Mate 60 Pro smartphone, raising eyebrows in the industry due to its sophisticated processor. Questions arose about how Huawei could access such technology amidst restrictions imposed by the United States over national security concerns.

IDC reported that Apple’s global smartphone sales declined mainly due to a loss of momentum in China, which remains a crucial market for the iPhone maker.

Shifting Consumer Preferences:

Chinese consumers increasingly favor domestic brands over Apple, posing challenges for the tech giant in the second-largest economy globally.

According to Counterpoint, smartphone sales in China witnessed modest growth of 1.5% in the first quarter, with local brands Vivo and Honor leading in market share.