According to an IDC report, Apple’s AAPL smartphone sales fell 0.3% year-on-year in the third quarter, but demand for the iPhone 16 series, which was launched in September, remained strong compared to the previous generation.
With this performance, Apple regained second place in China’s smartphone market, boosted by a 21.5% increase in shipments, achieving a market share of 15.6% behind Vivo, which led the market with an 18.6% share. .
Huawei has made a strong comeback, increasing shipments by 42% annually, capturing 15.3% of the market, and posting double-digit growth for four consecutive quarters.
Also read: Apple’s AI-powered future: New iPhone 17, AI integration will skyrocket iPhone growth by 2026, analysts say
Huawei’s advanced Chinese processors, which have garnered patriotic support in a tense geopolitical context, have driven the success of the brand’s premium segment despite US sanctions.
Xiaomi Corp. XIACF
Honor, a former Huawei sub-brand, ranked fifth with a 14.6% share, despite a 22.5% decline in unit shipments during the quarter.
The entire smartphone market in China, the world’s largest, increased by 3.2% year-on-year to 68.8 million units in the third quarter, marking the fourth consecutive quarter of growth. IDC analyst Arthur Guo attributed the increase to a “huge wave of device upgrades” fueling China’s smartphone recovery.
The performance coincides with China’s economic stimulus package and the upcoming holiday season.
Meanwhile, Apple offered notable promotions for the iPhone 16 in China, running pre-release discounts on platforms such as PDD Holdings’ PDD Pinduoduo and Alibaba Group Holding’s BABA Taobao. Ahead of Singles’ Day, Apple added further price cuts to attract more buyers.
Apple CEO Tim Cook recently met with China’s Minister of Industry and Information Technology Jin Zhuanglong. The minister reportedly expressed hope that Apple will increase its presence in China and cooperate with local companies.
This is Cook’s second trip to China in 2024. He shared that he visited organic farms and historic areas during his travels.
Needham analyst Laura Martin expects iPhone sales to account for 89% to 96% of Apple’s 2025 revenue.
Apple stock has risen 35% in the past 12 months. Investors can gain exposure to equities through the iShares Global Tech ETF IXN and the Vanguard Information Tech ETF VGT.
Price Action: At last check on Friday, AAPL stock was up 0.85% to $232.52.
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Photo courtesy of Apple
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