In an unexpected turn of events, Huawei is experiencing a strong resurgence in China, almost overtaking Apple in the world’s largest smartphone market. The Shenzhen-based company saw a remarkable 70% year-on-year growth in smartphone sales in the first quarter, while Apple’s sales decreased by more than 19% according to Counterpoint Research. This surge in Huawei’s performance is attributed to its impact on the premium segment, leading to Apple losing its top spot in China’s market share rankings.
The popular Mate 60 Pro smartphone by Huawei gained attention last year when the US government requested more information about the device, particularly its advanced processor. Industry experts were surprised by the debut of this model, considering the restrictions imposed by the US on China’s access to foreign chip technology due to national security concerns. This event raised questions about how Huawei managed to acquire such cutting-edge technology despite these challenges.
Counterpoint Research’s data further solidified Huawei’s climb in the Chinese smartphone market, coming right after IDC reported a global decline in Apple’s smartphone sales by 10% in the first quarter. This drop was primarily attributed to a loss of momentum in China, highlighting the challenges that Apple is encountering in this key market. Despite Apple’s significant presence in China, local consumers are increasingly turning towards Chinese brands, impacting Apple’s market share.
China’s overall smartphone sales grew by 1.5% in the first quarter, with local brands Vivo and Honor emerging as the top two brands by market share. This growth underscores the shifting dynamics within the Chinese smartphone market, with domestic players gaining traction over international competitors. Huawei’s impressive performance, coupled with the rise of local brands, reflects a changing landscape where Chinese consumers are increasingly favoring homegrown products over established global brands like Apple.
As Huawei continues to strengthen its position in the Chinese smartphone market, the competition between Huawei and Apple intensifies, with market share rankings being reshuffled. Huawei’s resilience in the face of challenges posed by the US government and its ability to drive growth in China are testament to its strategic approach and strong market appeal. The evolving preferences of Chinese consumers towards domestic brands indicate a broader trend that is reshaping the global smartphone industry, with implications for how international players like Apple navigate changing market dynamics in China and beyond.
