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For the first time in years, Apple’s iPhone sales made up half of China’s high-end smartphone market as the US tech giant took the lead over Chinese brands, notably Huawei, which is facing a survival crisis as the global economy heads into a prolonged recession. .
Strong sales of the iPhone 13 helped Apple capture 46 percent of China’s smartphone market that costs more than $400 (about Rs 31,000), while Chinese firm Vivo jumped to second place for the first time as rivals try to fill the gap left by Huawei. , media reports said here.
iPhone sales accounted for half of all smartphones sold for more than $400 in China in the second quarter, cementing the US tech giant’s lead as the top seller of premium phones in the country, according to a report by global industry analysis firm Counterpoint Research. on Wednesday.
Most notably, Huawei has struggled to sell new models launched since 2019, when it has been subject to US sanctions.
Huawei Technologies Co founder Ren Zhengfei recently said his firm faces a survival crisis as the world economy heads into a prolonged recession.
Huawei slipped to third place with an 11 percent market share for the quarter, down from 19 percent a year earlier, the Hong Kong-based South China Morning Post reported on Thursday.
Huawei, formerly China’s largest smartphone vendor, has seen its once-lucrative smartphone business face a serious crisis since it was blacklisted by the United States.
Meanwhile, an internal memo from Huawei’s founder has spread in China, projecting a bleak outlook for the global economy and his company.
The staff report painted a bleak picture of a world headed for economic recession. He urged employees to focus on the company’s survival and give up wishful thinking.
The next 10 years will come as a painful period in history as the world economy goes into recession… Huawei must temper any overly optimistic forecast and make survival the most important credo in the next three years, The Post quoted Ren as saying in a report.
Huawei has faced a serious crisis due to tough sanctions imposed by the US in the past few years, which has hampered its growth even in the lucrative Chinese market.
Reno’s new warnings come amid fresh challenges as Beijing continues draconian Covid-19 controls even as China’s economy is at its worst in decades.
China’s gross domestic product grew just 0.4 percent in the second quarter, the worst result since the first quarter of 2020, when the coronavirus shut down large parts of the country, knocking GDP down 6.8 percent.
Huawei’s revenue in the first half of 2022 further fell 5.9 percent from a year earlier to 301.6 billion yuan ($44.7 billion), while its net profit margin fell to 5 percent, compared with 9.8 percent in the same period last year. year.
China’s booming smartphone market has been crippled by a slowing economy and supply chain disruptions exacerbated by the country’s strict Covid-19 control policies, the Post reported.
Sales of premium smartphones in China fell 10 percent year-on-year in the second quarter. The overall headphone market fell 14 percent, the steepest decline in nearly a decade, as China’s economy slowed.
Some areas, including Shanghai and the surrounding regional manufacturing hub in the Yangtze River Delta, were partially locked down in the second quarter in an effort to limit the spread of the Omicron variant, Counterpoint analyst Zhang Mengmeng said.
In the ultra-high-end segment, defined as smartphones priced at $1,000 (approximately Rs 79,847) or above, iPhone sales grew 147 percent year-on-year. Samsung is also enjoying rapid growth, with same-category sales up 133 percent over the period, the Post reported, citing a Counterpoint Research report.
Both Apple and Samsung benefited from Huawei’s decline and a shift in purchasing trends toward premium phones in China, Zhang said.
Apple, which is expected to launch the iPhone 14 on September 7 in the US, has maintained a strong grip on the Chinese smartphone market amid challenges faced by local rivals.
“Apple and Huawei have been competing for first and second place for a long time. But now other big Chinese [manufacturers] have started to focus on the premium segment,” Counterpoint analyst Ivan Lam said.
