Apple loses top market share in China as Xiaomi and Huawei take over

Apple loses top market share in China as Xiaomi and Huawei take over
The Chinese consumer market has recently grown, and continues to grow, at an exponential rate. Over the past few years, the biggest names in tech have sought to capitalize, and Apple has been at the forefront of the movement to court gadget lovers across China. Cupertino has enjoyed strong sales and increased market share as a result, with the emerging economy affording many Chinese consumers the opportunity to snag a premium-priced device such as the iPhone. But having been the number one smartphone pusher for the past two quarters, the world's most valuable firm now finds itself edged out by Xiaomi and Huawei. 

The day of the cheap Chinese knock-off has not yet passed, and you can still find a watered-down version of almost any top-end gizmo through the nation's flourishing black market. But by the same token, a number of reputable companies originating from China have established themselves as genuine contenders, and both Xiaomi and Huawei have reached the forefront from relative obscurity just a few years ago. 

As per research gathered by Canalys, Xiaomi commanded a market share of 15.9 percent during the second quarter of this year, perching itself at the summit previously occupied by Apple. Huawei ran a close second, with an estimated share of 15.7 percent. 

The fact that Apple's iPhone 6 and 6 Plus are now in their twilight months -- the one-year shelf life has almost run its course -- is perhaps a key factor in why the fruit company seems to have slipped off the pace. Nonetheless, as Chinese companies look to broaden their horizons beyond the mostly Asian regions they occupy, this is by no means a one-off, and established firms like Apple and Samsung will be more than wary of their increased presence. 

The idea that Apple should have managed to reach top spot in China in the first says a lot about the company's popularity in this area of the world, though. iPhones, as we all know, are at the higher end of the pricing spectrum -- much costlier than a like-for-like alternative from Xiaomi and Huawei. So while market share may have waned a little in light of the impending 'iPhone 6s', Apple's battle plan still looks to be running smoothly as far as China is concerned. 

Canalys stopped short of divulging Apple's Q2 market share in China, but estimates from Counterpoint Research suggest that the figure hovered around the 12.2 percent mark. 

source: Canalys via CNet

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72 Comments

1. Kame_Hame_Haaaaa

Posts: 360; Member since: Jul 29, 2015

Most of western analyst were wrong when talking about china number. They only use "Urban China" number, not the whole china. When all of the china included Apple never in the top 5.

2. Scott93274

Posts: 6038; Member since: Aug 06, 2013

And how did you come to this conclusion?

5. Kame_Hame_Haaaaa

Posts: 360; Member since: Jul 29, 2015

Because some of them write in their report that China = Urban China. and they think that because Urban China = city = rich china. it would represent the number better since the village china = poor, and only sell cheap device.

6. Scott93274

Posts: 6038; Member since: Aug 06, 2013

Alright, so you don't have any reference or link leading to a more accurate market share then? Then your comment that Apple was never in the top 5 is simply your theory then.

8. Kame_Hame_Haaaaa

Posts: 360; Member since: Jul 29, 2015

I don't take a note, when i found one, i will post but here from kantar world panel, the analyst that phone arena love to quote in a couple of their article. (sorry I can't post link) kantarworldpanel.com/global/News/Chinese-New-Year-​brings-a-new-record-for-iOS-sales-in-urban-China "The latest smartphone sales data from Kantar Worldpanel ComTech for the three months ending in February 2015 shows that Appleā€™s iOS sales have reached an all-time high in urban China where it captured 27.6% of the smartphone market." -- URBAN CHINA!!

33. neela_akaash

Posts: 1239; Member since: Aug 05, 2014

Oops..... what's that smell. I think something's burning...

71. discharge unregistered

It's bad gas!! They farted I guess

15. marorun

Posts: 5029; Member since: Mar 30, 2015

You should work for Apple. Just look at several Apple china market share report on the web and you find the info. Apple lover are very good at protecting Apple shady business practice lol. Apple is good at excuses too. Last year they got to pay high amount of unpaid tax so this year they increased price in several country saying its was because of the exchange rate... All Lie as usual.

19. Scott93274

Posts: 6038; Member since: Aug 06, 2013

Umm.... ok, I think you might be high. For the record, I hate Apple, and in a month I'll be buying my 4th Android smartphone (Something I'm very excited about). Just because I challenge someone to back up their statement doesn't mean I side one way or the other. I'm simply trying to get more information.

28. discharge unregistered

Gee Scott are you one of them android freaks who dream of having a real device?? And can't afford a iPhone?? And use a device that has no resale value ya you should stay with your prepay android junk!!

31. Scott93274

Posts: 6038; Member since: Aug 06, 2013

Gee discharge, I think you were a little premature there. I'm a tech enthusiast who likes cutting edge. If I wanted a phone that gets features that have been in use by the competition for several years then I'd choose iPhone. And you're right, I can't afford the kind of cash Apple is asking for, at least not for a fashion accessory.

34. discharge unregistered

It's called eBay you can find one for less there...and are usually new and unlocked for use on all networks I'm a electronics junkie here too I will admit android has more features but to use then it go here go there to do a setting is a pain in the rear and battery is so so on my galaxy s6 edge that's my work phone and apple is my personal use best of both!! That's a tech junky as I am too ya I'm 26 and sometimes harsh on comments but it's America who isn't

46. Topcat488

Posts: 1415; Member since: Sep 29, 2012

Hahaha, you sound like a dishonorable "discharge" from the army, with statement #28 & 34. How can you taunt about not affording an iphone (Apps Launcher), then tell where you buy YOURS second hand... And make fun of "no resale value" Android phones, but yet carry a S6 that's too complicated for you to figure out?!? If the "work phone" is a "pain in the rear"... Maybe you should be discharge-d from that job too... And apply as a tech junky at Apple. That way you won't have to buy second or third hand iPhones from ebay... Don't take this in a harsh way dude, as we are here in America. O.o

57. discharge unregistered

Top at I discharged you down the toilet

44. shinywindow unregistered

You sir are an idiot.

48. Scott93274

Posts: 6038; Member since: Aug 06, 2013

Well that was entirely uncalled for. Why am I an idiot? "Just because I challenge someone to back up their statement doesn't mean I side one way or the other. I'm simply trying to get more information" Did that statement strike you as something an idiot would say or was it my accusation that someone who was attempting to insult Apple did so by attacking someone who doesn't use Apple?

7. promise7

Posts: 894; Member since: Jul 03, 2013

He pulled it out of his ass

10. Kame_Hame_Haaaaa

Posts: 360; Member since: Jul 29, 2015

LOL I just read, but I didn't take note. Next time, I'll take note.

27. bambamboogy02

Posts: 838; Member since: Jun 23, 2012

29. joseanand

Posts: 27; Member since: Aug 14, 2014

^^^this if you look at the 2014 smartphone market share in china (IDC Report) apple is not even in the top 5 spots.

30. MySchizoBuddy

Posts: 159; Member since: Aug 23, 2011

It's shocking that a company that sells premium product sells less than companies that sell all sort of junk product.

66. coldspring22

Posts: 349; Member since: Feb 28, 2015

Junk product? What are you smoking? Chinese Android vendors like Xiaomi, Huwei and Lenovo are producing top notch Android phones, as good or better than iphone 6 at fraction of the cost to consumer. I went from iphone 5 to low end Xiaomi Redmi Note, and it was like night and day. Iphone 5 is the junk. I've also used iphone 6 and it's no big shake. There are lots of android phones which surpass iphone 6 in quality and capabilty yet cost significantly less. All in all, what do you expect when iphone 6 is not made by Apple, but produced by Asian companies from very smallest component to final assembly? Apple is just a hollow company which orders iphone from the real technology powerhouse, the Asian companies that build all the Android phones AND also iphone.

3. Subie

Posts: 2367; Member since: Aug 01, 2015

Having 12.2 percent market share in a country with China's population and the price of each Iphone, it's no wonder they're worth 3/4 of a trillion dollars.

4. SirYar

Posts: 351; Member since: Jul 02, 2014

People in China finally starting to realize they were scammed.

22. jaytai0106

Posts: 1888; Member since: Mar 30, 2011

Nuh, I still think the number of iPhone sale in China is the same or slightly increasing. However, the sale of other Chinese phones are going up a lot quicker than iPhones.

9. hafini_27

Posts: 950; Member since: Oct 31, 2013

Considering the price and the experience of their phones, no surprise really.

11. Kruze

Posts: 1285; Member since: Dec 30, 2014

Xiaomi/Huawei > Apple

14. dimas

Posts: 3373; Member since: Jul 22, 2014

Year 2015: Any phone manufacturer > apple

43. bucky

Posts: 3785; Member since: Sep 30, 2009

I could trade in a pack of gum and a chicken for one of those phones. Don't get ahead of yourself

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