Huawei overthrew Apple from the top spot in the smartphone market in China
The sale of smartphones in China shows positive growth year after year, primarily due to the increase in sales of Android phones, and the result is the news that Huawei has ousted Apple phones from the position of leader in terms of market share. Apple phones have been experiencing a significant double-digit decline in the Chinese market for some time, and its year-over-year growth has been negative since the release of the new iPhone 15 series, according to a report by multinational investment bank Jefferies.
Analysts of this bank believe that the weak demand for iPhone phones would eventually lead to lower than expected global shipments of the iPhone 15 in 2023, reports CNBC.
This trend suggests that the iPhone will lose to Huawei phones next year in the competition to capture as much of the market as possible.
The growth in Android volume cannot be attributed to discounts, and the analysis claims that iPhone discounts, excluding the iPhone 15 models, are stable, while the average discount for Android is “not high”.
In addition, the analysis points out that all iPhone 15 resale devices are selling at discounts compared to the official selling prices, which also reflects the demand in China.
Other market research firms such as Morgan Stanley cut their price target on Apple from $215 to $210 in a report on Monday. They are now “more cautious” with the company’s December quarter due to supply turbulence.
In addition, the company’s analysts lowered expectations for iPhone devices for the next quarter by eight percent. They claim that they will track total Apple revenue, service revenue growth, gross margin as well as specifically China revenue growth from the September quarter, but that the guide for the upcoming December quarter is the most important. The American company Apple did not answer the questions sent to it by the journalists of the aforementioned portal.
This change in the Chinese market is to some extent expected, given that the US has introduced a series of technological sanctions against China, especially targeting the company Huawei, wanting to kick this country out of the global technology race.
However, China and Huawei have started to invest even more in their technology sector, which has resulted in the recently launched phones with domestically advanced 7nm chips, which has upset the US as sanctions have failed to prevent it. Accordingly, it is possible that the Chinese population has turned more towards domestic products, that is, Chinese smartphones.