Apple’s loss turning into a significant gain for Huawei. According to a recent report from Counterpoint, iPhone sales in China dropped by 19% in the first quarter of 2024, while Huawei’s smartphone sales soared by 69.7% during the same period. This remarkable turnaround for Huawei is largely attributed to the successful launch of the Mate 60 series, a high-end smartphone equipped with a 5G chip, and the brand’s strong reputation for quality. You can find the report here.
Since 2019, Huawei’s smartphone business faced significant challenges due to U.S. sanctions that restricted access to critical technology. However, the company’s resurgence has made it the fourth-largest smartphone maker in China, with Apple holding onto the third spot. Huawei’s growth in the premium segment, priced above $600, has contributed significantly to this shift in market dynamics.
Despite the setback in China, Apple is gearing up for a potential rebound. Senior analyst Ivan Lam from Counterpoint suggests that Apple’s upcoming initiatives, including new color options, aggressive discounts, and the introduction of artificial intelligence features at the Worldwide Developers Conference (WWDC) in June, could help the brand recover lost ground.
In a broader context, the Chinese smartphone market is expected to grow 1.5% year-on-year in the first quarter of 2023, indicating a slow but steady recovery. This growth is expected to be driven by increased demand for new devices equipped with artificial intelligence features. Other Chinese smartphone makers like Xiaomi, Oppo, and Honor are integrating cutting-edge technology into their flagship phones to maintain a competitive edge.
With Huawei’s resurgence and Apple’s potential comeback, the Chinese smartphone market promises to be a dynamic and evolving landscape in 2024, keeping both consumers and industry watchers on their toes.