Apple returns to top 5 in China smartphone market in Q3, but sees Y/Y dip as Huawei surges

Apple’s (NASDAQ:AAPL) reclaimed its place in the top five smartphone companies by market share in China, helped by the launch of its new iPhone 16 series in the third quarter, according to data from research firm IDC.

However, the U.S. tech giant saw a 0.3% year-over-year decline in shipments in the third quarter, while its Chinese rival Huawei Technologies witnessed a 42% surge year-over-year.

Huawei staged an impressive comeback, recording four consecutive quarters of at least double-digit growth. The launch of the world’s first tri-foldable phone is expected to further drive the foldable market development, according to the report.

Last month, Huawei unveiled its Z-shaped trifold phone Mate XT just a few hours after Apple launched its iPhone 16 models.

Initial sales figures of the iPhone 16 models are on par with its predecessor, and the company expects that upcoming promotions and the launch of Apple Intelligence will drive future demand, the report added.

China smartphone shipments rose 3.2% year-over-year to 68.8M units in the third quarter of 2024. This marked the fourth consecutive quarter of expansion, driven by a surge in device upgrades steered by sustained pent-up demand, the report added.

“A significant wave of device upgrades is propelling the sustained recovery of the Chinese smartphone market,” said Arthur Guo, senior research analyst in Client System Research for IDC China.

Apple followed vivo, which maintained its leadership position in the market in the Chinese market third quarter, using its strategy of distinct product positioning across its main and sub-brands.

The third quarter market share of vivo stood at 18.6%, compared to 15.8% in the year ago period. The company saw a year-over-year growth of 21.5%.

Apple’s market share was 15.6%, versus 16.1% in the year ago period. The U.S. company was closely followed by Huawei, which had a 15.3% share, versus 11.1% in the third quarter of 2023.

Xiaomi delivered its fifth straight quarter of growth by continuing to provide to budget-conscious consumers while also pushing boundaries in the high-end segment, the report noted.

Xiaomi, which has reportedly successfully taped-out a 3nm mobile system-on-a-chip (SoC), had a market share of 14.8%, growing at 12.8% year-over-year.

Honor took the fifth position but saw a decline in market share to 21.1%, compared to 23.9% in the third quarter of 2023. The brand saw a 9.2% decline year-over year, but popular models like X50, made Honor number one in the $100-$200 price segment, as per the report.

In addition, new models like Magic Flip and Magic V3 boosted Honor to second place in the foldable market this quarter.

“We anticipate the positive growth trajectory to continue into the fourth quarter,” said Jacob Zhu, research analyst for Client Devices at IDC Asia/Pacific.