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Apple Market Share And Shipments Fall In China

Apple Market Share

Apple Market Share In China

Apple market share defeated Samsung during the last quarter of 2016. Though recent data suggests that Samsung fell behind by not much. Industry analysis company Canalys released new data about the smartphone market in China. The numbers illustrate that Apple has to fight to survive with young competitors like Xiaomi.

Booming Chinese Market

Additionally, Canalys pointed out that China saw a drastic increase in smartphone shipments. The number rose to 476.5 million in 2016, with an 11.4% increase from 2015. In contrast, this percentage was as low as 1.9% between 2014 and 2015.

On top of this, shipments crossed 131 million during just the last quarter of 2016. This amount is huge as it equals about a third of global smartphone shipments. Moreover, this was the biggest ever quarterly total in China.

Specifically, Huawei took the lead with 76.2 million shipped smartphones. Right under Huawei was Oppo with over 70 million shipments in 2016. This was more than a 100% increase for the company as it shipped 30 million units in 2015. Vivo mobile bagged the third place with close to 60 million smartphones over the year.

Apple’s Disappointing Numbers

Xiaomi’s numbers were particularly impressive this time around. They seized the 4th spot on the list with 51.4 million units in 2016. With that said, we have Apple’s disappointing figures of 43.8 million units. This was a downfall of a massive 18.2% compared to 2015. Apple has fallen down to the 4th largest smartphone producer in China. On the contrary, Xiaomi commendably jumped up to 3rd place.

Unsurprisingly, this huge drop in shipments had a drastic impact on the market share. Apple has been thrown down from 15.2% (in 2015) to an infinitesimal 10.7% in 2016.

Apple’s Future In China

Despite these horrible numbers, Apple CEO Tim Cook remains confident about the company’s future. He described China as an immense growth zone. Cook explicitly talked about the growth of the Chinese services sector. Jessie Ding, a Canalys expert, predicts that the Cupertino giant will manage to fight back in 2017. He explained that the upcoming iPhone 8 will help the company battle its way back. Ding stated that:

“China and Hong Kong are still the hardest-hit areas in Apple’s global top ten market. This directly led to a 7.0% decline in global shipments compared to 2015.” He added: “This year, the outlook remains bleak for Apple to get its China performance back to its heyday of 2015. As with consumers in other developed markets, China’s consumers are awaiting the 10th anniversary of the iPhone with very high expectations.”

Ding’s predictions seem highly likely considering last year’s numbers. Samsung managed to stay ahead of Apple the entire year but Apple slightly outshined them in the last quarter. Last year’s data shows a heavily crushed Apple. Contrary to Canalys predictions that the giant still has fight left in it. Will the 10th Anniversary iPhone be a game changer for the company? We will find out in a few months and see just how much the Apple market share fares in China.

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