Huawei’s flagship store in Beijing saw a surge of customers eager to purchase the new Pura 70 series smartphones on April 18, 2024. The excitement was palpable as Shenzhen-based company made a roaring comeback in China and was closing in on Apple in the world’s largest smartphone market.
According to Counterpoint Research, Huawei experienced a remarkable 70% surge in smartphone sales in China in the first quarter, while Apple experienced a decline of more than 19%. Ivan Lam, a senior research analyst at Counterpoint, explained that Apple’s sales were subdued due to Huawei’s resurgence impacting the premium segment.
In contrast to Apple, Huawei’s market share spiked from 9.3% to 15.5% in the first quarter of this year with nearly 20% share last year. This growth was fueled by Huawei’s successful launch of Mate 60 Pro smartphone last year and its ability to overcome US restrictions imposed on its advanced processor.
Huawei created buzz with its Mate 60 Pro smartphone last year and raised eyebrows among industry experts when the US government sought more information about its advanced processor. Given the restrictions imposed by the US on China’s access to foreign chip technology due to national security concerns, this raised concerns among experts about how Huawei would continue to innovate and produce high-end devices.
Recent data from IDC indicated that Apple’s global smartphone sales had plummeted by 10% in the first quarter, largely due to waning momentum in China. With Chinese consumers increasingly turning away from foreign brands like Apple towards local ones such as Vivo and Honor, this shift reflects both Huawei’s resurgence and Apple’s struggles to maintain its foothold in the competitive landscape.
Overall, it is clear that China is becoming an increasingly important market for smartphone manufacturers as they compete for market share and try to stay ahead of their competition. As local brands continue to gain popularity and challenge traditional leaders like Apple, companies like Huawei will need to adapt quickly if they want to remain relevant in this rapidly changing industry landscape.
