Apple’s iPhone sales have dropped by 19% in the first quarter of 2024, while Huawei saw a staggering 69.7% increase in sales during the same period, according to a report from Counterpoint Research. This trend highlights a significant reshaping of the competitive landscape in China, with Huawei’s resurgence reshuffling the market dynamics.
Huawei’s remarkable growth is driven by the successful launch of its 5G-enabled Mate 60 series, which has gained traction among consumers, especially in the premium segment priced above $600. The brand’s robust reputation, combined with its strategic marketing initiatives, has helped it reclaim a substantial market share. Despite Huawei’s impressive comeback, HONOR managed to post a healthy 11.5% year-on-year growth, thanks to popular models like the X50 and Play 40, which have bolstered its presence in offline channels.
Apple’s Sluggish Sales and Potential Rebound
Despite Apple’s decline, Senior Analyst Ivan Lam believes that the company’s fortunes could change. “We are seeing slow but steady improvement from week to week,” Lam remarked, noting that the release of new color options and aggressive sales strategies could help Apple rebound. The company’s upcoming Worldwide Developers Conference (WWDC) in June, where it is expected to unveil new artificial intelligence features, could play a critical role in reigniting consumer interest.
Counterpoint’s report points out that overall smartphone sales in China have increased by 1.5% year-on-year, indicating a possible recovery in the broader market. Vivo emerged as the top performer with a 17.4% market share, followed by HONOR at 16.1% and Apple at 15.7%.
Artificial Intelligence’s Role in Market Recovery
Counterpoint expects that integrating artificial intelligence features into smartphones could drive renewed interest in the market. Several Chinese brands, including Xiaomi and Oppo, have already integrated Qualcomm’s Snapdragon 8 Gen 3 processor, designed for AI applications, into their flagship devices. Honor’s latest Magic 6 Pro, featuring eye-controlled driving, is another example of innovative AI-driven functionality that could fuel consumer demand.
For more details, refer to Counterpoint’s full report on their website: Counterpoint Research.
