Apple drops out of China’s top 5 smartphone brands

The American brand ranked sixth with a 14% market share in mainland China, down 2 percentage points year-on-year, according to data from Singapore-headquartered market research company Canalys.

Vivo claimed the top spot with a 19% share, followed by Oppo, Honor, Huawei and Xiaomi, which overtook Apple.

"It is the first quarter in history that domestic vendors dominate all the top five positions," said Canalys research analyst Lucas Zhong.

"Chinese vendors' strategies for high-end products and their deep collaboration with local supply chains are starting to pay off in hardware and software features".

Zhong added that the race ahead will depend on the adoption of AI technologies in smartphones.

Local brands Huawei, Honor, Oppo, and Vivo are leading the way by incorporating technologies such as GenAI into their products and services, he said.

The localization of Apple’s Intelligence services in mainland China therefore will be crucial in the next 12 months, he added.

Mainland China’s smartphone market grew 10% year-on-year to 70 million units in the second quarter, Canalys data shows.

"The Chinese market is finally aligning with global recovery speeds, largely driven by the supply side, said Canalys research manager Amber Liu.

Smartphone vendors offered many discounts and promotions since the beginning of the year to boost sales, she added.