Apple Dominates China’s Smartphone Market as No.1 Choice

In a surprising turn of events, Apple has emerged as the leading smartphone company in China for the first time. According to IDC, Apple captured a market share of 17.3% in 2023, surpassing its competitors and solidifying its position in the Chinese market.

This achievement comes amidst a challenging year for the smartphone industry in China. In 2023, smartphone shipments totaled 271.3 million units, marking a decline of 5.0% compared to the previous year. This decline represents the lowest volume in a decade, highlighting the tough market conditions faced by smartphone manufacturers.

However, there was a glimmer of hope in the fourth quarter of 2023. The China smartphone market experienced year-over-year growth of 1.2% with shipments of 73.6 million units. This growth put an end to ten consecutive quarters of decline, signaling a potential turnaround for the industry.

The resurgence in the market was largely driven by the resilient high-end consumers in tier 1-3 cities. These consumers showed a strong demand for flagship products, contributing to the overall growth. On the other hand, the demand for low- to mid-range devices remained weak, hindering the market's expansion. These devices make up over half of the smartphone market in China, making their performance crucial for the industry.

Apple's success in becoming the leading smartphone company can be attributed to its strategic price promotions in third-party channels. These promotions effectively stimulated demand and attracted consumers to Apple's products. IDC's Arthur Guo acknowledges the impact of these promotions in Apple's achievement.

Another noteworthy development in the fourth quarter of 2023 was the return of Huawei to the Top 5 ranking after more than two years. This comeback highlights Huawei's resilience and ability to regain its position in the highly competitive Chinese market. IDC's Will Wong emphasizes the significance of Huawei's return.