Apple’s smartphone shipments in China shrank 2.1 percent in the final quarter of last year from the same period in the previous year, hurt by intensifying competition from local rivals led by Huawei Technologies Co (華為), data from research firm IDC showed yesterday.
The drop underscores the challenges facing the US firm in its third-biggest market, as some Chinese companies and government agencies limit employees’ use of Apple devices, a measure that mirrors US government restrictions on Chinese apps on security grounds.
Huawei, whose smartphone business was stymied by US sanctions, also made a comeback last year with new launches, intensifying competition in the world’s biggest smartphone market, which grew just 1.2 percent in the final quarter of last year.
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Huawei’s shipments increased 36.2 percent last quarter, the IDC figures showed. The company became the fourth largest smartphone vendor in China in the
period with a 13.9 percent market share, up from 10.3 percent in the same year-ago quarter.
However, for the full year last year, Apple overtook Vivo to become the top smartphone seller with a 17.3 percent market share, the IDC data showed.
This marked the first time Apple became the top seller in China, but analysts predicted its sales would come under pressure again this year.
IDC said Apple’s high-end market share in China has been impacted by rival products and limited product upgrades by Apple, which reduced the overall attractiveness of iPhones.
It said Apple still attracted demand from many consumers through substantial discounts and promotions carried out through third-party distribution channels.
Earlier this month, Apple offered rare discounts on its iPhones, cutting retail prices by as much as 500 yuan (US$70) amid growing competitive pressure.
Jefferies analysts earlier this month predicted that Apple’s shipment volumes would continue declining by double-digit percentages this year, while Huawei is seen bolstering its market share.
They estimate Huawei would ship about 64 million smartphones worldwide this year, a significant rise from fewer than 35 million units projected for last year.
Overall, shipment volume in China’s smartphone market was 73.63 million units in the fourth quarter. For the full year, shipment volume was 271 million units, down 5 percent, IDC said.
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