Apple has shipped 5.7 million China Q2 2019 Smartphone Sales, which was 14% less compared to the same period in 2018, according to Canalys Smartphone Analysis (sell-in shipments) released today. Huawei topped the chart selling 37.3 million smartphones in the same period.
Chinese mobile markets have been dominated by local brands like Huawei, Oppo, Vivo, Xiaomi, and others. Apple iPhones are manufactured and sourced mostly from China through its string of contractors and tiered supplier/vendors. Even then, its sales figures did not help to make it to the top three selling brands for Q2 2019.
Huawei Captures 38% Market Share While Apple’s Stands at Just 6% in China Q2 2019 Sales
A sturdy 1.42 billion Chinese population had a strong capacity to absorb 97.6 million smartphones during the quarter in consideration. And imagine out of that figure, Huawei sold 37.3 million smartphones, which is phenomenal.
Huawei dominates the market and sold 37.3 million smartphones alone in China Mainland during the Q2 2019, gaining a market share of whooping 38.2%. Market drivers, according to the report, have been several.
Huawei was very aggressive in the Chinese market despite getting entangled in the US-China trade war as the leading player. In May, Trump Administration placed Huawei on the entity list that impacted its overseas sales adversely. But it turned out to be a blessing in disguise, as it looked inward and focussed on China mainland market to ramp up a good market share there.
“Huawei’s addition to the United States Entity List caused uncertainty overseas, but in China, it has kept its foot on the accelerator,” said Canalys analyst Mo Jia. “Its core strategy remains to invest in aggressive offline expansion, and luring consumers from rival brands Oppo and Vivo, while unleashing a wave of marketing spend to support new channels and technologies.”
The report also speaks about Chinese consumers in anticipation of 5G technology are either avoiding or instead, delaying the purchase of mid to high-end LTE devices driving their focus and investments on bringing out those devices.
Huawei topping the sales chart is also attributed to the patriotic fervor it fanned through a series of ad blitz surrounding the trade war run over local media. This also led to a hammering effect over its rivals like Oppo and Vivo who witnessed erosion in their respective sales compared by -18% and -19% over QII 2018.
Future Apple iPhone Sales May Hit Due to Low Demand, Pricing & Trade War
As regards Apple, China is turning out to be a distant dream after catching the attention of Chinese consumers in the initial years of its introduction. On the pricing front, Apple mostly addresses the top-end price segment in the Chinese smartphone market, which again is a big let down for it.
Simmering trade war effect and low demand will batter and further drag down sales for Apple in China for its smartphones even with marked improvements recorded in Q1. So all eyes at up on market closure today when Apple will announce its earnings for Fiscal Q3 with an eye on China.
Faced with debilitating effects of factors noted above, what can you envision for its sales in China? Where will it all lead to needs answers that will be difficult to put out. Isn’t it?