Apple is the biggest winner in the declining Chinese smartphone market

Apple is the biggest winner in the declining Chinese smartphone market

The newest knowledge launched by Counterpoint reveals that within the fourth quarter of 2021, Apple grew to become China’s largest smartphone provider with a market share of 23%. That is the primary time Apple has topped the Chinese language cell phone market since 2015. Zhang Mengmeng, a analysis analyst at Counterpoint, stated Apple’s outperformance was pushed by a mixture of its pricing technique and the premium it gained from Huawei. Because the launch of the iPhone 13 collection in September final 12 months, Apple has risen to first place within the Chinese language market. After that, it remained within the lead for many of the fourth quarter.

Apple’s iPhone 13 collection was launched within the Chinese language market at a aggressive value. For that reason, many high-end customers turned to Apple cell phones, pushing Apple to the highest place once more. Counterpoint believes that Apple’s high-end success is an encouraging signal and can proceed to encourage Chinese language producers to deploy on the high-end. The common promoting value of smartphones is anticipated to proceed to rise in China. Nonetheless, main smartphone manufacturers are actually intensify efforts to boost the common promoting costs in response to declining gross sales.

Actually, smartphone gross sales in China fell 9% year-on-year within the fourth quarter. That is the third straight quarter of declining smartphone gross sales. In response to Counterpoint, smartphone gross sales in 2021 may even proceed to say no for the fourth consecutive 12 months, down 2% year-on-year. Counterpoint identified that the previous 12 months has additionally been a milestone for Chinese language producers to undertake superior applied sciences. They’ve entered the upstream chip area with the likes of Vivo, Oppo and Xiaomi having their gained chips.

Oppo, Vivo and Apple tops the Chinese language smartphone market

Oppo and Honor have additionally launched foldable flagship fashions with extra mature designs and extremely custom-made software program. Foldable smartphones deliver a brand new type issue to smartphone design. As foldable gadgets grow to be extra reasonably priced, it could push customers to improve.

Ivan Lam, a senior analyst at Counterpoint, stated: “The Chinese language market continues to say no as a consequence of numerous elements on each the availability and demand sides. First, ongoing elements shortages are impacting all OEM shipments. Second, the common alternative cycle for smartphones in China is getting longer. Smartphone designs inside manufacturers have additionally grow to be extra homogeneous, particularly relating to {hardware}, failing to incentivize customers to improve. Lastly, China has skilled a posh financial surroundings, with exports driving development whereas Chinese language spending stays subdued”.

Counterpoint believes that the Chinese language market is altering quickly. That is the case from the rating of main producers in 2021. Oppo was prime within the first quarter, Vivo topped within the second and third quarter whereas Apple took the fourth quarter.