Huawei reclaimed the No. 1 spot in China’s smartphone sales rankings for the first time since the company was added to the US blacklist.
Huawei Technologies has returned to the No. 1 position in the Chinese smartphone market in the first two weeks of 2014, according to a report by the research firm Counterpointputting more pressure on Apple and its major mainland rivals.
This is the first time Huawei has regained the throne since Washington imposed sanctions. Huawei was added to the US trade blacklist in May 2019, paralyzing its mobile business.
A Huawei store in Beijing on August 30, 2023. (Photo: Reuters)
Huawei’s revival started with the surprising release of the Mate 60 Pro 5G smartphone in August 2023. The device uses the advanced Kirin 9000S processor, developed domestically despite US sanctions – as well as HarmonyOS, the mobile platform that replaces Android. Chinese consumer loyalty has contributed greatly to the popularity of its new 5G phones.
However, reports by Counterpoint pointed out Huawei still faces fierce competition in the mainland from Apple and domestic brands, including Xiaomi, Oppo and Vivo.
Strong domestic demand for Huawei’s new 5G smartphone models partly reflects improved device upgrade demand as Beijing works to ease mounting pressure from debt, deflation and Weakened faith.
China’s smartphone industry showed signs of recovery in 2023, as shipments increased 6.5% year-on-year to 289 million units, according to data from the Chinese Academy of Information and Communications Technology. Quoc. Domestic brands accounted for 231 million units, or about 80% of total shipments.
Theo Counterpoint, sales of the high-end phone segment also increased by 37% last year, despite the general weakness of the global smartphone market. While Apple led the domestic premium segment in the first half of 2023, the iPhone maker’s sales began to squeeze in the third quarter due to strong pressure from Chinese suppliers, led by Huawei.
Huawei smartphone sales increased at the beginning of this year while iPhone sales decreased in the last quarter of last year. Still, Apple remains mainland China’s top smartphone supplier in the fourth quarter and all of 2023, according to research firm IDC.
Last week, Apple reported a nearly 13% drop in revenue from the China region – which includes the mainland, Hong Kong, Macau and Taiwan – in the last three months of 2023, while sales increased in other regions.
According to a recent note from analyst Ming Chi Kuo, Apple’s weekly iPhone shipments in China have dropped 30 to 40 percent in recent weeks. Mr. Kuo predicts this downward trend will continue this year.
“The main reason for the decline is Huawei’s comeback and the fact that foldable phones have gradually become the top choice for high-end users in the Chinese market,” Mr. Kuo wrote in the note. .
Apple remained the unrivaled leader in the high-end smartphone segment (devices priced from $600) last year with 71% market share, according to Counterpoint. However, Apple’s market share in this segment has decreased from 75% in 2022 due to Huawei and Samsung.
In a rare move, Apple last month slashed prices by up to 800 yuan ($113) for Chinese consumers on a range of products, from iPhones to MacBooks, ahead of the Lunar New Year to fend off Xiaomi and Honor. However, Huawei did not pursue a similar strategy as production constraints resulted in short supply of the Mate 60 Pro.
(Theo SCMP)