Apple returns to top 5 in China with iPhone 16, Huawei grows faster

Apple rejoined the ranks of the top five smartphone vendors in China in the third quarter, thanks to the launch of the iPhone 16, data released on Friday showed – but its growth remains stagnant. Domestic rival Huawei is far ahead.

Apple ranked second in market share in the third quarter, according to International Data Corporation (IDC). The tech giant accounted for 15.6% of the Chinese market during the period, down from 16.1% in the third quarter of last year. The company’s shipment growth rate to China was flat in the third quarter compared to the same period last year. Apple ranked second in terms of market share in the third quarter.

IDC data shows that Huawei is behind Apple in third place with 15.3% market share. However, the company’s smartphone sales in China increased 42% year-on-year, as it continued its resurgence in the world’s largest smartphone market.

Apple and Huawei have been locked in an intense battle since the Chinese tech giant launched its new product Last year’s Mate 60 smartphone contained a surprisingly advanced chip. Huawei has been hit hard over the past few years by US sanctions that limit its access to advanced semiconductors, along with software. The measures are there crippled its smartphone business.

The Mate 60 led to Huawei’s resurgence in its home market, and since then the company has launched several new devices, including the so-called tri-fold phone, Mate XT.

Huawei’s rise has put strong pressure on Apple in China, one of its largest and most important markets. In the second quarter, Apple was eliminated from the top 5 in China in terms of market share.

IDC said in its report: “Huawei has made an impressive comeback, recording four consecutive quarters of at least double-digit growth. The launch of the world’s first triple-folding screen phone is expected ​will further promote the development of the folding screen market.”

The Cupertino giant is hoping the iPhone 16 series will help it return to China, with the company promising plenty of new AI software features called Apple Intelligence. The company says Apple Intelligence will launch in the US this fall, but there’s no clear timeline for when it will be released in China, mainly due to more complex regulations in the country.

Apple Intelligence, its Chinese rival, is absent including OppoHuawei and Honor have tout their own AI features.

Apple CEO Tim Cook visited China this week, meeting with top government officials and executives at the country’s technology companies. one analyst told CNBC this could be an attempt to forge partnerships with Chinese companies to launch Apple Intelligence.

Domestic rival Vivo came in first place with an 18.6% China market share in the third quarter and annual sales growth of 21.5%, IDC said. Xiaomi and Honor are in fourth and fifth place, respectively.

Separate numbers released by Canalys on Friday showed that Apple’s China shipments in the third quarter fell 6% year-on-year. Canalys said Apple is in fifth place in terms of market share in China. Meanwhile, this data company put Huawei in second place in terms of market share, with 24% growth over the same period in the third quarter of this year.