Huawei’s smartphone rivals in China have grown steadily in market share over the past year.
According to market research firm Canals, 92.4 million smartphones were shipped to China during the first quarter, with Vivo claiming the crown with a 23% share and its sister company Oppo lagging behind with 22%. Huawei, which saw a decline in smartphone sales following chip cuts from its supply chain following US sanctions, came in third at 16%. Xiaomi and Apple finished fourth and fifth respectively.
All major smartphone brands but Huawei saw an uptick in their market share in China from Q1 2020. Apple’s net sales in Greater China rose year-over-year to nearly $ 17.7 billion in the three months ending in March, a quarter of record revenue for the US giant, according to its latest financial results.
“We are particularly pleased with the customer response in China for the iPhone 12 family,”
Said Tim Cook during an earnings call this week. “You have to remember that China entered the shutdown phase in the second quarter of last year compared to other countries. And so they were relatively more affected in that quarter, and that should be taken into consideration in view of the result. “
Huawei’s stock shrunk from 41% to 16% in a year’s time, although the telecom equipment giant managed to increase its profit margin partly due to lower costs. In November, it sold its budget phone line Honor.
This quarter is also the first time that China’s smartphone market has grown in four years, which according to Canalys is a growth rate of 27%.
“Leading vendors are racing to the top of the market, and an unusually high number of smartphones launched this quarter compared to Q1 2020 or even Q4 2020,” said Canalys analyst Amber Liu.
“Huawei’s restrictions and Honor’s division is the hallmark of this new market development, as consumers and channels are more open to alternative brands.”