Apple (NASDAQ:AAPL) iPhone shipments in Mainland China dropped by around 4% in the second quarter of 2024, according to the latest report from technology market analyst firm Canalys.
According to an article from Bloomberg, citing the Canalys report, the company's shipments declined about 3.9%, with Apple shipping less than 10 million units in the period.
However, Bloomberg cautioned that official China phone registration data showed iPhones climbing by more than 40% in April and May, however that tracks pre-sale registrations and can differ from third-party shipment trackers like Canalys.
Despite the overall growth in the Chinese smartphone market, which saw a 10% year-on-year increase with shipments exceeding 70 million units, Canalys said Apple slipped to sixth place with a 14% market share, down by 2% from the previous year.
Vivo reclaimed the top position in the market by shipping 13.1 million units, capturing a 19% market share, driven by strong offline and online sales during the "618" e-commerce festival, said the firm. OPPO secured second place with 11.3 million units shipped, thanks to the launch of its new Reno 12 series.
HONOR followed in third place with 10.7 million units, marking a 4% year-on-year increase, and Huawei took fourth with 10.6 million units, although its growth has slowed slightly.
Xiaomi re-entered the top five with a 17% year-on-year increase, shipping 10 million units, bolstered by significant marketing efforts for its first electric car, the SU7, and robust sales of its K70 and flagship 14 series.
"The Chinese market is finally aligning with global recovery speeds," commented analysts. This recovery was reportedly fueled by significant nationwide sales events and strategic promotional cycles initiated by smartphone vendors in collaboration with e-commerce platforms.
However, Apple is facing challenges in China, as noted by analysts. "Apple is facing a bottleneck in mainland China. The vendor's current channel strategy maintains a healthy inventory level and aims to stabilize retail prices and protect margins of channel partners," they explained.
Despite these challenges, the long-term opportunities in the Chinese high-end market remain promising, according to Canalys.
Looking ahead, analysts highlighted three key trends impacting the market landscape in the second half of 2024. These include Huawei's upcoming launch of HarmonyOS Next, investments in AI infrastructure by local players, and the overseas expansion of Chinese brands.
Overall, while the Chinese smartphone market shows signs of recovery, Apple must navigate increased competition and evolving market dynamics to regain its footing.