According to data from research firm IDC, Apple (AAPL, Financial) returned to the top five in the smartphone business by market share in China in the third quarter of 2024. The introduction of the iPhone 16 series has enabled the US tech giant to remain competitive in the Chinese market. Meanwhile, Apple’s third-quarter shipments were down 0.3% year over year. But domestic competitor Huawei has made a significant recovery after years of hardship due to U.S. sanctions and supply chain restrictions. Sales increased 42% compared to the same period last year. Huawei’s successful introduction of creative products, such as the first tri-fold mobile phone “Mate XT”, which is expected to revitalize the foldable market, contributed to the business development. China’s total smartphone shipments in the third quarter were 68.8 million units, an increase of 3.2%. This was the fourth consecutive quarterly increase compared to the same month last year. Sustained demand for gadget upgrades has fueled this expansion, especially as manufacturers add innovative technologies and features to attract consumers. Thanks to its superior products, Vivo maintained its leadership in China’s smartphone market with a share increase of 18.6% from 15.8% in the same period last year. Positioning that spans both the main brand and sub-brands. Vivo confirmed its dominance with a remarkable 21.5% year-on-year increase. Apple’s share, which was the second-largest in the Chinese market at 15.6%, fell slightly from 16.1% in Q3 2023. Huawei led the market by a narrow margin. The market share increased from 11.1% to 15.3% compared to the previous year. Strong customer demand for Huawei’s premium products, especially in the foldable phone category, helped the company make a comeback in the Chinese market. Xiaomi (XIACF, Financial), which has a market share of 14.8%, continued its upward trajectory and reached its sixth consecutive quarter of expansion. The company’s success has been driven by its dual focus on providing high-end gadgets and on budget-conscious customers. Especially in the premium market, Xiaomi’s declared development of a 3 nm mobile system-on-chip has strengthened its competitive advantage. Honor, which still ranks in the top five, has decreased its market share from 23.9% to 21.1%. Q3 2023. Still, the brand is a major participant in the field of foldable smartphones, and new models such as Magic Flip and Magic V3 have propelled Honor to second place in this market.
This article first appeared on GuruFocus.
