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Apple's sales in China dip in third quarter while rival Huawei's rise

Published 25/10/2024, 11:30
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Investing.com -- Sales of Apple's flagship iPhone dipped by 0.3% in the third quarter, while rival Huawei's devices spiked by 42%, underlining the fierce competition in the world's biggest smartphone market.

Huawei is the third-largest player in the country, capturing 15.3% of the market, while California-based Apple (NASDAQ:AAPL) is in second place with 15.6%, according to data from researcher IDC on Friday.

Budget phone retailer Vivo is currently the leading vendor in China with 18.6%.

Huawei has pushed in recent months to emphasize new premium offerings, including the launch of its Mate 60 Pro smartphone that is reportedly powered by a domestically-produced chip. The Chinese tech giant also unveiled its high-end Pura 70 model earlier this year.

Apple, meanwhile, has moved to slash the prices of its phones to boost sales in China. Its performance in the country has come under particular scrutiny after reports said government officials had been mandated not to use iPhones for work.

Still, demand for Apple's new iPhone 16 offering, which went on sale the same day as Huawei released a tri-foldable phone, has been strong. Sales were 20% in the first three weeks since its launch compared to Apple's 2023 device, Reuters reported, citing separate data from researcher Counterpoint.

The uptick has helped to put Apple back into the top five smartphone companies in China, IDC noted.

Overall smartphone sales in China increased by 3.2% to 68.78 million units, even as recent sluggishness in the broader economy has weighed on consumer spending.

"A significant wave of device upgrades is propelling the sustained recovery of the Chinese smartphone market," said Arthur Guo, senior research analyst in Client System Research for IDC China, in a statement. "Despite ongoing economic challenges, consumers are highly motivated to purchase new smartphones after three years of pent-up demand."

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