According to the latest report from market research agency Canalys, in the second quarter of 2024, the shipments of the smartphone market in Chinese mainland increased by 10% year-on-year, and the market achieved further recovery, with shipments returning to the level of 70 million units. The growth rate is more than 40 per cent, and some reports even point to an increase of as much as 50.2 percent. This strong performance has allowed Huawei's market share to quickly climb to 18.1%, closely following the market leader vivo (18.5% market share), demonstrating Huawei's strong competitiveness in the high-end smartphone market. Among them, the most striking change is that for the first time, local Chinese manufacturers have taken the top five positions in market share, while Apple has fallen out of the top five for the first time.
Huawei's success is not accidental. In recent years, Huawei has continued to increase its investment in technology research and development and product innovation, and has launched a number of highly-acclaimed flagship mobile phones, such as the Mate 60 series and Pura 70 series. These products have won wide acceptance from consumers for their outstanding performance, superior photographic capabilities, and unique design language. At the same time, Huawei continues to optimize its ecosystem to provide users with a more convenient and intelligent life experience through the HarmonyOS system and rich application services.
At the same time, Apple's performance in the Chinese market has declined to a certain extent. According to Canalys, Apple's market share fell slightly by 2% year-on-year, accounting for 14% of the market share, dropping back to sixth place. This change reflects the fierce competition that Apple is facing in the Chinese market from local brands, as well as the rapid changes in consumer demand and market environment.
Figure: The rise of Huawei, Apple's market share in China has shrunk (Source: Taipei Times)
In addition to Huawei, local Chinese brands such as vivo, OPPO, Honor and Xiaomi all performed well, occupying the top four positions in market share, respectively. Through continuous product innovation, market strategy adjustment, and close cooperation with local supply chains, these brands have successfully won the favor of consumers and occupied a favorable position in the market.
Apple's woes in the Chinese market didn't happen overnight. On the one hand, domestic brands such as Huawei have formed direct competition with Apple in the high-end smartphone market by virtue of technological innovation and localization advantages, attracting a large number of consumers who might otherwise choose Apple. On the other hand, with the increasing maturity of the domestic smartphone market and the diversification of consumer demand, Apple's high-price strategy has begun to be challenged, and consumers pay more attention to cost-effectiveness and practicality, and their willingness to consume high-end smartphones has decreased.
On the whole, a new pattern of China's smartphone market has been formed, and the collective rise of local manufacturers is reshaping the face of market competition. For international brands, how to better adapt to market changes and meet the needs of local consumers will be the key to their success in the Chinese market. For local Chinese manufacturers, continuous innovation and deepening supply chain cooperation will be an important way to maintain their competitive advantage. With the continuous development of new technologies such as 5G and artificial intelligence, the future of China's smartphone market will be more worth looking forward to.
