Apple Dominates the Chinese Smartphone Market with a Record 17.3% Share in 2023

The smartphone market is highly competitive, with companies vying for market share through aggressive trade-in offers. For the first time in 2023, Apple emerged as the leading smartphone vendor in China. According to an analysis by Stocklytics.com, Apple captured a market share of 17.3% in China last year, marking a record-high for the company in the world’s second-largest economy.

Although Apple experienced a more than 2% decline in overall smartphone shipments in 2023, claiming the top spot amidst stiff competition from Huawei and subdued consumer spending represents a substantial success for Apple.

Stocklytics Financial analyst Edith Reads commented on the data:

Apple’s ascendancy to the top of China’s smartphone market underscores the company’s strategic prowess and adaptability in navigating challenging landscapes. Amidst shifting market dynamics and intensified competition, their record market share reflects product appeal and astute pricing strategies.

Stocklytics Financial Analyst Edith Reads

Apple Strategic Pricing Stimulates Demand

Over 270 million smartphone shipments were recorded in 2023, highlighting the dynamism and fierce competition within the Chinese mobile phone market. Homegrown giants such as Huawei, Xiaomi, Oppo, and Vivo have solidified their positions through brand recognition, expansive distribution networks, and competitive pricing strategies.

These domestic players are poised to maintain their dominance, particularly in the mid-range and budget sectors. Meanwhile, international heavyweights like Apple hold significant shares in the premium segment.

Apple’s success stems from strategic price promotions across third-party channels, which have fueled product demand. During Q4 2023 and the beginning of January 2024, Apple extended discounts across the iPhone 15 range on its website to maintain momentum, cutting retail prices by as much as 500 yuan ($70) amid growing competition pressure.

In 2023, Honor, a spin-off from Huawei, secured the second position after Apple with a 16.8% market share, followed by Vivo (15.7%), Huawei (13.9%), and Oppo (13.7%).

Huawei’s Remarkable Resurgence

A notable development in 2023 was Huawei’s resurgence, reclaiming a spot in the top five rankings in China during the fourth quarter after being outside the leading group for over two years. 

Despite facing setbacks from U.S. sanctions, Huawei’s introduced the Mate 60. This smartphone, powered by a cutting-edge semiconductor from China’s largest chipmaker, SMIC, led to significant gains in China. 

Huawei’s shipments grew 36% year-on-year in Q4 2023, commanding a 13.9% market share. This resurgence displaced Xiaomi from the top five rankings, intensifying competition in the world’s largest smartphone market.

The market remains fiercely contested with evolving consumer tastes, rapid technological innovations, and relentless rivalry between local and global brands, driving continuous advancements and improvements.