For the first time in many years, Apple is not in the list of top 5 Chinese phone manufacturers, while Huawei rises to fourth place.
According to data from the second quarter of 2024 released by research firm Canalys on July 25, the Chinese smartphone market recorded a growth of 10% compared to the same period in 2023 with shipments exceeding 70 million units. The rankings of manufacturers also changed, with all the top 5 positions belonging to domestic names.
"This is the first quarter in history that domestic suppliers dominate all the top 5 positions," said Canalys researcher Lucas Zhong. "Chinese companies' strategy of aiming for high-end products as well as their deep cooperation with local supply chains is paying off in both hardware and software features."
Among them, Huawei had the strongest increase of 41%, from 7.5 million to 10.6 million units, reaching a market share of 15% and marking its return to the top 5 after many years of being affected by the US ban. Last year, they ranked 6th, but the launch of a series of new devices such as the Mate 60 or Pura 70 series and the support of domestic users helped increase their market share significantly.
Meanwhile, for the first time in many years, Apple "dropped" from the list of the top 5 phone manufacturers in China in the last quarter. The company ranked 6th with nearly 14% market share, down 2% compared to the same period last year, despite boosting sales channels and reducing prices to stimulate demand.
The difference in smartphone market share among Chinese brands is not too high. Vivo maintained its number one position with 13.1 million units shipped, accounting for 19% of the market. Oppo and Honor followed with 16% and 15%, respectively. Xiaomi ranked fifth with 14%.
"The growth in Q2/2024 signals a gradual normalization of the Chinese market, but we still expect a modest single-digit recovery this year," said Toby Zhu, an analyst at Canalys.
According to him, there are three main trends affecting the Chinese smartphone market in the second half of the year. Among them, Huawei's launch of HarmonyOS Next will significantly change the company's market share in the coming time. The fact that domestic brands are investing in AI infrastructure, developing internal AI models and creating AI applications can also create competitive advantages in all segments. Finally, fierce domestic competition also encourages companies to expand into foreign markets.