Huawei retains fragile lead in China smartphone shipments, Apple finally finds growth

Laverne Mann
October 31, 2017

Chinese smartphone shipments registered another quarter of decline as the market contracted 5% in Q3 2017 to 119 million units. This makes it Apple's best performance in China in the last eight quarters, where its growth has slowed considerably since the launch of the iPhone 6S. The race to the top remains tight as Huawei, Oppo and Vivo took 19%, 18% and 17% market share respectively. A 40% increase has already been demonstrated by Apple in the year 2017, as you can view in this graph.

A survey by Canalys found that around 11 million iPhones were shipped in the third-quarter against 8 million previous year in the same period in China. Further, Canalys noted that the iPhone 8 buyers must be thanked for the turnaround as the phone contributed more to the sales compared to what the iPhone 7 did at the same point a year ago. The response to the new iPhone 8 and the iPhone 8 Plus has been positive, and the Chinese audience is hyped for the iPhone X.

Apple has been working remarkably to keep up its quarterly deals, the entire year.

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According to Canalys Research Analyst Mo Jia, Apple's growth this quarter is temporary. Mr. Jia stated that even though the device would launch this week, the pricing structure and supply issues will restrain growth.

Looking ahead, Canalys said that Apple's upcoming iPhone X is attracting demand, but its high price and low supply could combine to garner few sales and ultimately won't help iPhone sales in the country. He added that the iPhone X would enjoy a healthy grey market status, but Apple's popularity is unlikely to be helped by it in the short term. The hike in September iPhone shipments in China ended a six quarter downtrend for the handset in the market. "However, Apple is unlikely to sustain this growth in Q4".

But Apple's rebound may be "short-lived" in the fourth quarter as competition heats up, according to analysts.

Other reports by MaliBehiribAe

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