Apple delivered 5.7 million Chinese smartphone sales in China in Q2, which was 14% less than the same period in 2018, according to Canalys Smartphone Analysis (submission shipments) released today. Huawei topped the map that sold 37.3 million smartphones in the same period.
Chinese mobile markets have been dominated by local brands such as Huawei, Oppo, Vivo, Xiaomi and others. Apple iPhones are manufactured and sourced most from China through their string of contractors and tiered supplier / suppliers. Even then, sales figures did not help the top three seller brands for Q2 2019.
Huawei captures 38% market share while Apple's stand at just 6% in China Q2 201
A solid 1.42 billion The Chinese population had a strong capacity to absorb 97.6 million smartphones during the assessment. And imagine this figure, Huawei sold 37.3 million smartphones, which is amazing.
Huawei dominates the market, selling 37.3 million smartphones on the mainland alone during the second quarter of 2019, gaining a 38.2% market share. According to the report, market drivers have been several.
Huawei was very aggressive in the Chinese market despite being entangled in the US-China trade war as the leading player. In May, the Trump administration placed Huawei on the device list that negatively affected sales abroad. But it turned out to be a blessing in disguise as it looked beyond and focused on the Chinese mainland market to increase a good market share there.
"Huawei's addition to the US unit list caused uncertainty overseas, but in China it has kept its foot on the gas pedal," Canalys analyst Mo Jia said. "There remains a strategy for investing in aggressive offline expansion and luring consumers from rival brands Oppo and Vivo, while unleashing a wave of marketing costs to support new channels and technologies."
The report also talks about Chinese consumers. pending 5G technology either avoids or delays the acquisition of Mid to high-end LTE devices that drive their focus and investment in getting those devices.
Huawei, who tops the sales chart, is also attributed to the patriotic spirit it found through a series of flashes around the trade war run over local media. This also led to a hammering effect on their rivals such as Oppo and Vivo who witnessed erosion in their respective sales compared to -18% and -19% during the second quarter of 2018.
Future sales of Apple iPhone may hit due of low demand, prices and Trade War
When it comes to Apple, China turns out to be a distant dream after getting the attention of Chinese consumers in the early years of its introduction. On the price front, Apple mostly addresses the top segment of the Chinese smartphone market, which in turn is a major failure for that.
The dampening trade war effect and low demand will beat and reduce Apple's sales further China for its smartphones even with marked improvements recorded in Q1. So, all eyes are on the market for closure today when Apple will announce revenue for Fiscal Q3 with a glance at China.
When faced with the debilitating effects of factors mentioned above, what can you see for sales in China? Where will it all lead to needed answers that will be difficult to post. Is not it?