For the first time in years, Apple has fallen out of the top five smartphone manufacturers in China, with Huawei climbing to fourth place.
According to Canalys’ Q2 2024 data released on July 25, the Chinese smartphone market saw a 10% growth compared to the same period in 2023, with over 70 million units shipped. The rankings of manufacturers have also shifted, with all top five positions now held by domestic brands.
“This is the first quarter in history where domestic suppliers dominate all five top positions,” commented Canalys researcher Lucas Zhong. The strategy of Chinese companies focusing on premium products and their deep collaboration with local supply chains is yielding results in both hardware and software capabilities.
Among these, Huawei experienced the most significant growth, with a 41% increase, from 7.5 million to 10.6 million units, capturing a 15% market share. This marks its return to the top five after years of being affected by U.S. sanctions. Last year, Huawei was in sixth place, but the launch of a slew of new devices such as the Mate 60 series and Pura 70, along with strong domestic support, significantly boosted its market share.
Meanwhile, for the first time in many years, Apple has been “bounced” from the top five list of smartphone makers in China for the past quarter. The company is now in sixth place with nearly a 14% market share, a 2% drop compared to the same period last year, despite ramping up sales channels and offering discounts to stimulate demand.
The market share of smartphones among Chinese brands is fairly close. Vivo maintains its leading position, shipping 13.1 million units and securing 19% of the market share. Oppo and Honor follow closely with 16% and 15%, respectively. Xiaomi ranks fifth with 14%.
“The growth in Q2 2024 signals a gradual normalization of the Chinese market, but we still expect a modest single-digit recovery for the year,” said Toby Zhu, an analyst at Canalys.
According to Zhu, three main trends will impact the Chinese smartphone market in the second half of the year. First, the launch of Huawei’s HarmonyOS Next is expected to significantly alter the company’s market share. Second, domestic brands are investing heavily in AI infrastructure, developing proprietary AI models, and creating AI applications, which could provide a competitive edge across all segments. Lastly, intense domestic competition is driving companies to expand into international markets.
