Apple Drops out of Top 5 Smartphone Vendors in China as Domestic Brands Thrive

Domestic smartphone brands in China have overtaken Apple in market dominance, pushing the tech giant out of the top five vendors list, according to a report by Canalys. In the second quarter, Apple's market share in China dropped to 14%, down from 15% in the previous quarter. With about 9.7 million shipments, Apple now ranks sixth among smartphone vendors. This quarter marks the first time that all top five positions have been occupied by domestic brands. Apple's shipments have been declining since the first quarter, experiencing a 25% drop year-on-year to 10 million units.

Canalys researcher, Lucas Zhong, attributed the success of Chinese vendors to their strategic focus on high-end products and collaborations with local supply chains. Market leader Vivo reclaimed its position with 19% market share and strong offline and online sales, followed by Oppo, Huawei's spinoff brand Honor, and Huawei itself, which had a 4% increase in year-on-year shipments. Xiaomi secured the fifth spot, having benefited from the popularity of its SU7 electric car and the sales of its K70 and flagship 14 series smartphones.

The overall Chinese smartphone market experienced a 10% growth in the second quarter, surpassing 70 million units in shipments. Canalys suggests that Apple's localization of intelligence services in China and closer partnerships with local suppliers will play a crucial role in maintaining foothold within the Chinese market as domestic brands continue to embrace generative AI technology in their products.

Earlier SSP reported that Mark Zuckerberg predicts future where AI-generated clones will help content creators.