Apple Inc’s AAPL smartphone sales declined 0.3% year over year in the third quarter, though demand for the iPhone 16 series, launched in September, held steady compared to previous generations, according to the IDC report.
This performance helped Apple regain its No. 2 position in China’s smartphone market, achieving a 15.6% market share—just behind Vivo, which led the market with an 18.6% share, boosted by 21.5% growth in shipments.
In a strong comeback, Huawei Technologies Co grew its shipments by 42% yearly to capture 15.3% of the market, following four consecutive quarters of double-digit growth.
Huawei’s advanced China-made processor, which stoked patriotic support amid the tense geopolitical backdrop, has driven the brand’s premium segment success despite U.S. sanctions.
Xiaomi Corp XIACF XIACY also saw gains, ranking fourth with a 14.8% market share as its shipments increased by 12.8%, fueled by a push in both budget-friendly and high-end segments.
Honor, the former Huawei sub-brand, took fifth place with a 14.6% share, though its shipments declined by 22.5% during the quarter.
The overall Chinese smartphone market, the world’s largest, grew 3.2% year on year to 68.8 million units in the third quarter, marking a fourth straight quarter of growth. IDC analyst Arthur Guo attributed this rise to a “significant wave of device upgrades” driving China’s smartphone recovery.
The performance coincides with China’s stimulus plans and the upcoming holiday season.
Meanwhile, Apple offered notable promotions for the iPhone 16 in China, with pre-release discounts on platforms like PDD Holdings Inc PDD Pinduoduo and Alibaba Group Holding BABA Taobao. Ahead of Singles’ Day, Apple added further price reductions to attract more buyers.
Apple chief Tim Cook recently met with Jin Zhuanglong, China’s Minister for Industry and Information Technology. The minister reportedly expressed hopes that Apple will grow its presence in China and collaborate with local firms.
The visit marks Cook’s second visit to China in 2024. He showcased his visits to an organic farm and historic neighborhoods during his trip.
Needham analyst Laura Martin expects iPhone sales to account for 89%-96% of Apple’s 2025 revenue.
Apple stock gained 35% in the last 12 months. Investors can gain exposure to the stock through iShares Global Tech ETF IXN and Vanguard Information Tech ETF VGT.
Price Action: AAPL stock is up 0.85% at $232.52 at the last check on Friday.
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