Despite U.S. Pressure, Huawei Overtakes Apple as Top Smartphone Market Shareholder in China

Apple’s iPhone has been overtaken by Huawei in the Chinese smartphone market, losing its top spot. Just a few months ago, Huawei, which had declared that it was not concerned about U.S. regulations on China, has now taken the lead in the domestic smartphone market.

According to a report by the American investment bank Jefferies on the 18th, Apple’s iPhone, which has consistently held the top spot in the Chinese smartphone market, has been caught by Huawei and stepped down from its leading position. This is the first time Apple has lost its number-one market share in China since the launch of the iPhone.

Jefferies analyzed that while Chinese companies such as Huawei, Xiaomi, and Honor are recording double-digit growth rates in smartphone sales compared to last year, the iPhone shows a double-digit decline. The analyst believes that the new iPhone 15 cannot escape this trend.

The iPhone 15 series was launched in China on the 22nd of last month, following its first reveal on the 12th.

Jefferies predicts Apple’s position in the Chinese smartphone market will not improve next year. Jefferies stated, “As Apple struggles in its key market of China, this year’s global iPhone 15 shipments are expected to fall short of expectations,” and “The iPhone will continue to be pushed by Huawei next year.”

Following the news of the sluggish sales of the Apple iPhone 15, the famous American investment bank Morgan Stanley has lowered Apple’s target price from $215 to $210.

Huawei has been facing the dual challenges of saturation in the Chinese telecommunications market and pressure from the U.S. Unlike the domestic mobile telecommunications market, which has transitioned from LTE to 5G, China has skipped LTE. As a result, the market share of 5G communication equipment exceeds 70%. In this situation, it is receiving U.S. restrictions, such as control over exports of essential semiconductor equipment.

Previously, Huawei had expressed its determination to focus on business with its partners, stating that it did not care about U.S. regulations. At the ‘Huawei Asia-Pacific Partner Conference 2023’ held in Shenzhen, China, in May this year, Aaron Wang, Vice President of Huawei Asia-Pacific Enterprise Business, said about external adversities, “We are not very worried about the external environment.”

He emphasized, “Since 2019, global issues have been ongoing. Huawei has been providing solutions and services to our partners consistently. Huawei’s strategy is to continue to grow and survive.”

By. Ahn Se Jun