Xiaomi ranked first in sales in December with 3.48 million units… Apple, a precarious second place with 3.36 million units
Xiaomi and Huawei sales increase approximately 1.5 times due to the ‘patriotic consumption’ trend… Apple decreased by 11%
Apple, which ranked first in global smartphone shipments last year, is struggling in China, one of the world’s largest markets. As ‘patriotic consumption’ continued in China in the aftermath of the US-China trade conflict, it lost its top spot in sales to Chinese companies.
Initially, Apple has ranked first in the Chinese market for two consecutive years since 2020, when Huawei was extremely strong, every fourth quarter when a new iPhone product was released. Although it maintained its first place in the fourth quarter of 2023, the gap with Chinese companies is narrowing significantly, and in December, the first place was handed over to Xiaomi.
According to market research firms Counterpoint Research and BCI on the 24th, Chinese smartphone sales in the fourth quarter are estimated to be about 68 million units, up 7% from the same period last year. This growth appears to be due to the sales volume of Huawei, which signaled the revival of 5G smartphones with the Mate 60, increasing by 70% compared to the previous year, and Xiaomi also growing by 36% due to the success of the 14 series.
In the case of Apple, which introduced the iPhone 15 series, its influence decreased as sales in the 14 weeks after launch decreased by 11% compared to the previous model. In particular, Apple boosted sales by carrying out unprecedented promotions during Single’s Day, China’s largest consumer event, but its growth appears to be slowing down as it loses demand for premium phones following the revival of Huawei.
This can be interpreted as a strong trend of patriotic consumption among Chinese consumers, as the Chinese government imposed a ban on foreign phones, including iPhones, for civil servants and public institutions workers in the second half of last year.
Looking at the market share trends of each smartphone brand in China in the fourth quarter of last year, Apple’s downward trend is clearly visible. According to BCI analysis, Xiaomi ranked first in smartphone sales in the Chinese market as of December last year with 3.48 million units. It increased by 25.8% compared to the same period last year, raising the market share to 16.5%.
On the other hand, during the same period, Apple fell to second place with 3.36 million units. During the same period, sales volume decreased by 17.7% and market share decreased to 15.9%. Even second place is in jeopardy, with a gap of only 10,000 units from third place Longyao.
Apple ranked first in China with sales of 5.61 million units and 6.04 million units in October and November last year. In the case of the entire fourth quarter, it ranked first with 15.01 million units (20% market share).
But the decline is unusual. Compared to the same period last year, Apple’s sales in the fourth quarter decreased by 10.6%, and when limited to December, it decreased by 17.7%.
On the other hand, Chinese companies such as Xiaomi and Huawei are showing rapid growth during the same period. Based on sales volume, Xiaomi increased by 38.4% and Huawei increased by 79.3%. Initially, the difference in sales between Apple and Xiaomi in the fourth quarter of 2022 was almost double, at 16.78 million units and 8.53 million units, but this year, the gap has narrowed significantly to 15.01 million units and 11.8 million units.
According to market research firm IDC, Apple recorded 234.6 million smartphone shipments in 2023, surpassing Samsung Electronics for the first time in 13 years and taking first place with a 20.1% market share. However, in the Chinese market, where Samsung Electronics was not greatly affected with a market share of less than 1%, it is unclear whether Apple will be able to maintain its No. 1 position until this year as only the iPhone is directly affected by patriotic consumption.
In fact, American investment bank Jefferies analyzed in a report earlier this month that iPhone sales in China in the first week of this year decreased by 30% compared to the same period last year. Apple, as if conscious of this crisis, also reduced the price of its latest product, the iPhone 15, by 6 to 8%, or 500 yuan (about 90,000 won), during the Chinese New Year holiday event.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.