Apple vs. Huawei: The Battle for China's Smartphone Market

Apple's smartphone shipments in China dropped 25% in late 2024, challenged by a robust Huawei resurgence. Despite holding a slim market lead, Apple faces intense competition from Huawei, especially after its return to the premium segment. Apple's sales strategies include discounts and improved customer programs.

In a significant development, Apple's smartphone shipments in China saw a dramatic 25% drop in the final quarter of 2024. Research by Canalys indicates the tech giant is experiencing mounting competitive pressure from Huawei, a reinvigorated rival in this crucial market.

During this period, Apple shipped 13.1 million units, maintaining a narrow market lead with a 17% share, nearly matched by Huawei, which reached an equivalent share with 12.9 million units. The resurgence of Huawei, posting a substantial 24% rise in shipments, is a notable challenge, propelled by their reentry into the premium sector with domestically produced chipsets.

In response, Apple has resorted to offering rare discounts to spur sales amidst the fierce competition, initiating a promotional campaign in early January with price reductions on iPhone 16 models. Concurrently, major Chinese e-commerce entities like Alibaba's Tmall have offered notable discounts on Apple's devices. Canalys analyst Amber Liu highlights Apple's strategic enhancements beyond seasonal promotions, focusing on customer retention and improved retail strategies.

(With inputs from agencies.)