In the first quarter of 2024, Apple encountered significant hurdles in the Chinese smartphone market. Despite a global increase in smartphone shipments, Apple experienced a sharp 19% decline in iPhone sales in China, marking its lowest performance since 2020. This downturn led to a drop in market share from 19.7% to 15.7% compared to the previous year, pushing Apple to third place behind Vivo and Honor.

The decline in iPhone sales can be attributed to various factors. Notably, a government ban on using Apple devices by employees impacted the company’s sales. Additionally, Huawei Technologies’ resurgence posed a formidable challenge. Huawei’s sales soared by an impressive 69.7%, driven by the successful launch of its high-end Mate 60 series. This surge catapulted Huawei to fourth place in market share, capturing 15.5% of the market.

Furthermore, subdued demand for Apple devices contributed to the decline. Despite efforts to entice consumers with discount campaigns and subsidies of up to 1,300 yuan ($180), Apple struggled to maintain its foothold in the competitive Chinese market.

Looking ahead, there are signs of potential improvement for Apple in the second quarter of 2024. Analysts at Counterpoint Research suggest a possible shift in momentum for iPhones, fueled by the introduction of new color options and aggressive sales initiatives.

All eyes are now on Apple’s upcoming earnings report on May 2, where investors anticipate insights into the company’s strategies to address the challenges in China. Apple’s ability to adapt and innovate will be crucial as it navigates the dynamic landscape of the Chinese smartphone market.

As Apple contends with fierce competition and regulatory challenges, its response in the coming months will shape its trajectory in one of the world’s largest consumer markets. The company’s resilience and strategic decisions will be closely monitored by industry observers and consumers alike.

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Huawei is currently the third smartphone brand in the world after Samsung and Apple. In 2017, the Chinese company shipped a huge amount of smartphones: 153 million units all around the world. At the Honor Play launch event, the CEO Yu Chengdong has announced that the company is planning to cross the “200 million” milestone in 2018.

For the company, it would mean shipping 30 percent more units as compared with last year. The CEO believes it is possible to achieve this figure as the company has increased its business by 51 times in just seven years, from 2010 to 2017. Besides being the third smartphone manufacturer in the global market, Huawei is also the first smartphone manufacturer in China. In 2017 the Chinese hi-tech giant briefly passed Apple in the ranking, but Apple regained the second spot after the launch of the new iPhones around late 2017.

RELATED: Huawei Mate 20 Pro Reportedly Coming with Massive 6.9-inch OLED Screen

A big help has been given by the sub-brand Honor which is in the top 10 best smartphones brands as well. Even though the company is on the podium of best smartphone brands, currently there are no Huawei phones in the rankings of top-selling smartphones in the world pertaining to the latest period (Q1 2018). Meanwhile, Xiaomi’s competition is becoming a menace each day as the company, currently at the 4th place of best smartphone brands, is slowly expanding in the global market, especially in the high-end segment. It has just published a report highlighting 28 million smartphones shipped in Q1 2018 (from January to March).

Do you believe the Chinese company will reach the 200 million shipments milestone announced in 2018?

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In China, Huawei holds the largest market share in the smartphone industry with 16.4 percent and it is currently the third largest smartphone manufacturer in the world. It aims to take over the top position by dethroning brands likes Apple and Samsung that are currently on the first and second positions.

In comparison to the sales result in 2015, Huawei managed to sell 30 percent more smartphones in 2016 even though the smartphone sales have been consistently declining. An interesting thing to note is that the more of smartphones that Huawei sold last year brought lowered profits to the company, The Information reported.

In 2015, Huawei made $2.2 billion in profit, but despite of selling 30 percent more smartphones last year, it could achieve a profit of $2 billion. In other words, its sales profit dropped by 10 percent in 2016. Last year, the revenue generated by the consumer business wing of Huawei rose by 42 percent to $26 billion.

Related: Expect to Pay More for The Huawei P10 and Xiaomi Mi 6: Blame High Cost of Components

This shows that while there was a significant increase in revenue, its expenses also increased.  It is speculated that rising prices of components and a huge increase marketing expenses could have caused Huawei to encounter such a dip in profits.

For 2017, Huawei has reportedly set a strict aim of increasing its consumer group profits by twofold to reach $4 billion. To achieve it, it will be trying to cut costs in areas such as marketing and retail sales channels. This could be mean that the Shenzhen-based company that in a bid to achieve higher profits, the company may not invest more on aggressively markets its devices.

Recent rumors have also hinted that its upcoming flagship smartphones, the Huawei P10 and P10 Plus would be available with a higher pricing compared to its predecessor models. This could be one of its strategies to increase shipments as well as its profits. Moreover, Huawei has managed to increase its visibility in Western markets. This could also help it in achieving more profits this year.

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We are sure Huawei must have thrown a party for its staff after this news was announced. The company’s Senior Vice President, Yu Chengdong Yu Chengdong announced on his Weibo page that  the company has shipped 60.56 million phones this year which is an increase of 25% from last year.

This is exciting news for the company as this figure is the annual target for quite a number of manufacturers seeing that we’ve just started the second half of the year.

The company’s smartphone revenue for the first half which increased by 41% from last year is about 77.4 billion Yuan ($11.59 bn). The company’s share of the global smartphone market is now at 11.4%, coming in at third place behind Samsung and Apple.

Worldwide Growth

The company has also posted details of their market in certain countries such as the UK where they have 3.9% of the market, 6.7% in France and 9.6% in Germany. The company has also recorded a 700% brand growth in Egypt, 200% in Chile and 134% in Peru.

Part of the company’s top products include the Mate 8, the P9 and P9 Plus, the MateBook and the Huawei Watch

READ MORE: Huawei H1 Revenue

Congratulations to Huawei.

Do you think part of Huawei’s success this year can be attributed to their Nexus 6P partnership with Google? Let’s see your opinions in the comment box below.

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Huawei had a wonderful 2015, selling over 108 million smartphones in a single year, which is quite a big achievement for the company. This year, the company plans to sell even more smartphones, somewhere around 140 million which will be great, if it manages to reach this target. However, according to supply chain sources, Huawei has reduced this target to 120 million for 2016, as it failed to reach internal goals due to the high price of its top-end phones. Well, to be honest, 120 million isn’t bad for a smartphone company in this market. It still represents a good 11% growth, which is better than most other smartphone makers who are focused on the high-end market.

Huawei is still doing well in the high-end market and recently, in the grand sale on JD.com in China, the company managed to come out as one of the top three smartphone makers. Also, it’s interesting to see the company’s high-end smartphones managed to come on top, in the two high-priced segments during the sale. For example, in the 2500-2999 Yuan segment, Huawei Mate 8 as well as Honor V8 were the top three phones, and in the 3000-3999 Yuan segment as well, Huawei P9 and Huawei P9 Plus made it to the top three.

So, even if Huawei does not reach its far fetched goal of selling 140 million smartphones, doing well in the high-end market could turn out to be good for the company. According to the company, it has already sold more than 2.6 million Huawei P9 and P9 Plus units since launch.

One brand to watch out in 2016 is OPPO who is also doing incredibly well. The company has reportedly sold more than 7 million OPPO R9 / OPPO F1 Plus smartphone since its launch a few months back and if the company manages to reach analyst prediction of 77-80 million units of smartphones sold in 2016, then it would be a big milestone for the company. Given that OPPO’s strength is really in the high-end segment, it could turn out to be a Chinese smartphone maker that Huawei has to look out for in the coming years.

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According to the latest information from a Chinese analyst, Huawei shipped more than 40% of its smartphones outside of the domestic market. That’s quite an impressive figure considering that the company managed to ship more than 100 million units in 2015 alone.

Huawei reportedly sold a total of 109.015 million units last year, with an annual growth rate of nearly 45%. Out of these, 63 million smartphones were shipped domestically in China, which comes to around 58%. The rest 42% of phones were shipped outside the country.

Even with such impressive figures, both domestically and globally, the company hasn’t managed to take the top spot in China. During a recent event, Xiaomi’s President had revealed that it shipped over 70 million smartphones last year, which was lower than the initial target of 80 million but still, it was the first in the country. So, it looks like Xiaomi has sold over 63 million phones in the domestic market. It looks like the company meant that its still first in terms of market share in China for the year 2015.

Although a win inside of China, Xiaomi has a long way to catch up with Huawei. The latter has a very strong presence internationally, and with its entry into the US market with products such as the Honor 5X and the Huawei Mate 8, we can expect Huawei to ship more units this year. So, it won’t be easy to close the gap between the two companies which is currently over 30 million units.

So, do you think Xiaomi can close in the lead secured by Huawei last year?

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A few months back, Huawei had revealed that it is ahead on schedule to break the 100 million smartphone shipment record in 2015. Looks like the company was right indeed, as today, Huawei has revealed via its official Weibo account that it has shipped more than 100 million smartphones as of December 18, 2015. This is a new record for the company, who is currently ranked as the third largest smartphone maker on the planet.

The company has upped its game in 2015, releasing new devices every couple of months. This way, the company covered each and every price point, from low-end Honor Play 4C, mid-range Honor 7 to the powerful Huawei Mate 8! Plus, its one of the few Chinese smartphone makers to establish a strong presence in a number of international markets in Asia and Europe.

So, there’s no surprise that the company managed to ship more than 100 million units in 2015. In comparison, Xiaomi, who also had a target of 100 million units, may end up selling only about 73 million units this year.

2016 will be even more interesting for the company as a recent teaser revealed that Huawei will enter the US market with mainstream smartphones, the Honor 5X and the flagship, Huawei Mate 8. Another thing to note here is that a lot of the phones shipped this year, like the Huawei P8 (Kirin 935), Mate S (935) and the Huawei Mate 8 (Kirin 950) are running on the company’s home-grown Kirin chipsets. Next year, we can expect the company to release more devices with its own chip inside.

Only a few smartphone makers have managed to achieve this feat (ship more than 100 mil smartphones in a year), so today, Huawei joins the exclusive club that features companies like Samsung and Apple.

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Huawei Mate 7 is without any doubt one of the best looking flagship smartphone available in the market even today. So, it wasn’t surprising when Huawei’s President of Smartphone division revealed that the company managed to ship over 4 million Huawei Mate 7 smartphones in the past six months alone. He further revealed a few more details about the company’s future plans.

While talking at the Summit, the Company’s President of Smartphone division revealed that Mate 7 is the best selling high-end flagship smartphone of the company. This was the first time the company was crossing the 100,000 shipment mark for a phone that costs more than 3000 Yuan.

He adds that the company’s main priority was quality and performance rather than sales. Huawei wanted to create a good product which stood out from its competitors when it comes to features. And the Mate 7 managed to accomplish some of that with its stellar metal body, a beautiful large screen display and a powerful and efficient fingerprint sensor better than most competitors out there in the market.

He says that Huawei’s high-end smartphones are known for its performance, however, consumers are not aware of the brand and its quality. The company plans to change that by interacting with its customers and promoting its products mainly through the internet.

Finally, he also revealed that the company aims to focus on a core group of products. We have already heard of the company’s plans to focus on the high-end market and slowly leave the crowded low end segment. The success of the Huawei Mate 7 will definitely help in accomplishing this goal.

So, have you ever used a Huawei product? Do you think Huawei can survive by focusing mainly on the high-end market?

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