Rise of Domestic Chinese Smartphones, iPhone Market Share Continues to Decline in China

Rise of Domestic Chinese Smartphones, iPhone Market Share Continues to Decline in ChinaAccording to data from China Academy of Information and Communications Technology, domestic smartphone shipments in August increased by 26.7% year-on-year, reaching 24

Rise of Domestic Chinese Smartphones, iPhone Market Share Continues to Decline in China

According to data from China Academy of Information and Communications Technology, domestic smartphone shipments in August increased by 26.7% year-on-year, reaching 24.047 million units, driven mainly by domestic brands. During the same period, overseas brand (mainly iPhone) smartphone shipments fell by 12.7% year-on-year.

The decline in iPhone's market share in China is primarily attributed to the increasingly intense competition from domestic brands. In recent years, domestic smartphone brands have achieved significant breakthroughs in technological research and product innovation, leading to their products achieving performance, functionality, and design levels comparable to or even exceeding the iPhone. Furthermore, domestic brands have adopted more flexible pricing strategies, catering to the needs of diverse consumers.

Currently, domestic smartphones have become the mainstream in China's smartphone market, accounting for the vast majority of market share. Among them, brands like Xiaomi, Huawei, OPPO, and vivo have particularly distinguished themselves.

Take Xiaomi as an example. According to Counterpoint, a third-party market research firm, Xiaomi surpassed Apple in August to become the world's second-largest smartphone brand by shipments, marking the first time Xiaomi has achieved this position in three years. Counterpoint Research pointed out that Xiaomi was one of the fastest-growing brands in the first half of 2024, with sales revenue increasing by 22% year-on-year. Although growth may slow down in the second half of the year due to diminishing base effects, Xiaomi is still expected to achieve strong double-digit growth for the entire year 2024.

Huawei has also displayed strong competitiveness in the high-end smartphone market. Huawei has put significant pressure on Apple in the 5000+ yuan high-end smartphone segment, capturing a considerable market share. At one point, Huawei even regained the top spot in China's smartphone market.

The rise of domestic smartphones is not merely a testament to the brands' strength but also reflects the continuous enhancement of China's technological prowess. With the continuous development and innovation of domestic smartphones, they are poised to occupy an increasingly important position in the global smartphone market and contribute to China's technological advancement.

Simultaneously, iPhone's predicament in the Chinese market indicates the need for Apple to adopt a more proactive response strategy. In addition to maintaining its product innovation advantages, Apple needs to pay greater attention to the needs of Chinese consumers and formulate more flexible pricing strategies to address the fierce competition from domestic brands.

In conclusion, the rise of domestic smartphones and the persistent decline of iPhone's market share in China signal a more intense competitive landscape in China's smartphone market. Future competition will not be solely about price wars but will focus more on a comprehensive competition that prioritizes product innovation, user experience, and brand value.