Apple’s iPhone a shining star in Chinese smartphone market

Better is better than best with iPhone

This doesn’t often happen. Weeks before the introduction of a new iPhone model the existing edition still appears to be selling strongly worldwide, with fresh data suggesting this pattern also extends to China – which (as I predicted over a decade ago, to a chorus of disbelief), is now a hugely important market to Apple.

Market down, Apple iPhone is up

The latest Counterpoint report tells us that while the local market in China declined 14% and sales of premium smartphones worth $400 or above fell 10%, Apple saw a significant increase in sales in Q2 22.

Sales of the Apple device apparently more than doubled. Indeed, its success also drove growth in the $600-$799 (premium) and $1,000 and above (ultra-premium) segments in the quarter.

Naturally the pandemic and lockdowns impacted the market, but this makes Apple’s doubling of position even more remarkable. Apple now accounts for an impressive 46% of China’s smartphone market. It seems to love leading the market there.

Research Analyst Mengmeng Zhang said:

“Apple did well in the $1,000 and above segment, recording 147% YoY increase, while Samsung also grew 133% YoY. Both these brands benefitted from Huawei’s decline and the shift in purchase trends towards premium phones in China.”

Competitors seek to become unique 

Now, we can’t know for sure that Apple will be able to maintain its position. What we do know is that Chinese smartphone manufacturers are now searching for ways to get involved in the premium smartphone space.

Commenting on the ongoing trends in the premium segment, Senior Analyst Varun Mishra said:

“Leading Chinese OEMs have been actively focusing on the premium segment with concrete strategies, including bringing foldable flagship models customized for Chinese consumers and partnering with traditional camera giants such as Leica, Zeiss and Hasselblad. We expect the competition in this segment to intensify going forward.

At the same time, Samsung is capturing a higher share in this segment due to its foldables line-up, which could result in a resurgence for the South Korean vendor.”

The news confirms a noticeable trajectory in recent months in which while the market slumps Apple’s iPhone continues to experience gains. This should translate into significant market share advances over time and does of course further extend the company’s addressable market for services and accessories.

We’ve seen sales success in the US, India, Vietnam, Europe and elsewhere. Apple’s “unceasing” iPhone sales appear to be hitting the spot, when as the new breed iPhone 14 looms into the light.

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