Apple experienced a decline in iPhone sales in China during the third quarter, despite reclaiming a top five rank, while rival Huawei saw an increase amid intensifying competition in one of the world's largest smartphone markets.
Reuters reported that the sales of the mobile phone giant has fallen by 0.3%. On the other hand, Huawei saw a surge of 42% in the same period.
Researcher IDC's data revealed on Friday showed that Apple returned to the top five smartphone companies at second place with the launch of its new iPhone 16 series. The iPhone maker had a market share of 15.6%, which was down by 0.5 percentage points year-on-year.
"Initial sales figures are on par with its predecessor, and the company anticipates that upcoming promotions and the anticipated launch of Apple Intelligence will drive future demand," IDC said.
Vivo, which leveraged its effective strategy of distinct product positioning across its main and sub-brands, remained the top vendor with a market share of 18.6%, reported IDC.
Meanwhile, Huawei gained 4.2 percentage points and had a market share of 15.3%, putting it at third place, following its offering high-end phones just last year, with its Mate 60 series. According to analysts, the phone has a "domestically produced chip."
Aside from the Mate 60 series, Huawei released another eye-catching and advanced phone - the Pura 70. This was only released earlier this year.
IDC added that Xiaomi's market share increased 1.2 percentage point to 14.8% as the firm delivered its fifth straight quarter of growth by continuing to cater to budget-conscious consumers while also pushing boundaries in the high-end segment. Xiaomi secured the fourth spot.
Honor secured the fifth position in Top 5 driven by popular models like X50, that made Honor number one in the $100-$200 price segment. Additionally, new models like Magic Flip and Magic V3 propelled 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. "This momentum will be bolstered by the early release of flagship models from leading brands, as well as the early kick-off of the Singles Day shopping festival."
China, whose smartphone shipments grew 3.2% in the third quarter to 68.78 million units, is a key market for Apple.
The iPhone maker remains popular among Chinese consumers but has ceded ground to domestic rivals in recent years as the Asian nation faces slowing economic growth and sluggish consumption.
In addition, Apple has been confronted with a number of issues in its China market. Several government agencies have imposed restrictions on the use of the iPhone, which then pushed the tech giant to counter it through numerous discount campaigns in order to help increase sales.
The third-quarter sales of the company received a boost from the launch of the iPhone 16. However, also on the same day, Huawei released its tri-foldable phone, directly competing with the iPhone 16.
Separate data from researcher Counterpoint showed that the launch of the new iPhone in China showed a strong start. It enjoyed 20% higher sales in the first three weeks compared to other phones in 2023.
Meanwhile, Apple CEO Tim Cook was in China for the second time, as the US technology giant sought to shore up slumping sales in a crucial overseas market.
