In a groundbreaking development, Apple has emerged as the leading smartphone vendor in China for the first time, according to new data for the year 2023 released on Thursday. The International Data Corporation (IDC) reported that Apple secured a market share of 17.3%, marking a record-high for the tech giant in the world’s second-largest economy.
While Apple experienced a 2.2% year-on-year decline in overall smartphone shipments for 2023, the broader market faced a 5% contraction, as indicated by the IDC. It’s worth noting that shipments represent devices sent to third-party sellers and may not directly correlate with direct sales but serve as a reliable indicator of demand.
Arthur Guo, senior research analyst at IDC China, expressed the significance of Apple’s achievement, stating, “Apple’s climb to the top spot in 2023, especially in light of renewed competition from Huawei and the soft spending sentiment, marks a tremendous success for Apple.” Guo attributed Apple’s success to well-timed price promotions in third-party channels that stimulated demand.
Notably, various online sales platforms in China provided discounts on the flagship iPhone 15 in the fourth quarter, and Apple, this month, implemented rare discounts across the entire iPhone 15 range on its official website in China to maintain momentum.
China’s smartphone market has been impacted by economic uncertainties and weakened consumer spending. In 2023, Honor, a spin-off from Chinese company Huawei, secured the second spot with a 16.8% market share, followed by Vivo, Huawei, and Oppo.
Counterpoint Research, another market research firm, also released China’s smartphone market data on Thursday, anticipating low single-digit year-on-year growth in 2024, marking the first growth since 2018.
Huawei’s Resurgence: Return to Top 5
A significant shift in 2023 saw Huawei reentering the top five rankings in China during the fourth quarter after more than two years outside this leading group. Once the largest smartphone maker in China and globally, Huawei’s handset business suffered due to U.S. sanctions, cutting it off from crucial technologies.
However, in a surprising turn of events, Huawei unveiled the Mate 60, a phone equipped with a cutting-edge semiconductor manufactured by China’s largest chipmaker, SMIC. This move defied U.S. sanctions, which were designed to prevent such occurrences.
The Mate 60 contributed to Huawei’s substantial gains in China, with shipments growing by 36% year-on-year in the December quarter, commanding a 13.9% market share, according to IDC. Huawei’s resurgence pushed Chinese electronics maker Xiaomi out of the top five.
Will Wong, senior research manager at IDC, emphasized the escalating competition, stating, “This will only intensify the competition as no vendors will want to lose a top 5 position in the world’s largest smartphone market.” The reentry of Huawei into the top rankings sets the stage for heightened rivalry among major players in the Chinese smartphone landscape.
