Apple is struggling with the performance of all its products, including smartphones, tablet PCs, and smartwatches, in its largest market, China. This is because local corporations such as Huawei, Vivo, and Xiaomi are expanding their influence with cost-effective products.
According to the market research firm Counterpoint Research on the 13th, Apple ranked second in the Chinese smartphone market in the fourth quarter of last year with a 17% share. This is a decrease of 4 percentage points compared to the same period the previous year. Typically, Apple launches new iPhone models in the fall, causing a surge in fourth-quarter market share. However, the iPhone 16 appears to have underperformed in sales due to a lack of artificial intelligence (AI) features, resulting in a failure to capitalize on its launch effect.
Vivo ranked first in the Chinese smartphone market with an 18% share. Vivo's share increased by 3 percentage points compared to the previous year. Huawei also recorded a joint second place with Apple at 17%. Xiaomi, in third place with a 16% share, is closely chasing the leading companies.
Vivo launched the V200 smartphone priced around 800,000 won last year. It offers various features, including four high-performance rear cameras capable of recording slow-motion video at up to 4K resolution. It is characterized by its collaboration with Sony, the leading camera sensor company, to implement an AI-based image quality enhancement system.
Apple is also under pressure in the Chinese tablet PC market. According to the market research firm Canalys, in the fourth quarter of last year, Apple recorded a 24% market share, a decrease of 4 percentage points compared to the previous year, finishing in second place. Huawei took the top spot with a 26% share, while third-place Xiaomi had a 13% share.
Huawei is analyzed to have boosted local sales through the MatePad 11.5 S tablet PC model launched in May of last year, priced around 600,000 won. This product features a self-developed Kirin chipset and its own operating system (OS), Harmony OS, enhancing cost-effectiveness. It achieved a high screen refresh rate of 144 Hz.
Apple is experiencing a downturn in the Chinese smartwatch market as well. According to the market research firm IDC, Apple recorded a 7.3% market share in the Chinese smartwatch market from the first to third quarters of last year, ranking fourth, which is a decrease of 1.5 percentage points compared to the previous year. During the same period, Huawei topped the list with a market share of 35.7%, an increase of 7.1 percentage points from the previous year. Xiaomi ranked second with 21%, while BBK was third with 16.9%.
Huawei's D2 smartwatch, launched in November last year and priced at around 400,000 won, is equipped with a blood pressure measurement feature. This feature allows it to be registered as a medical device in China, enabling purchase at a discounted rate through health insurance.
China is Apple’s largest market, accounting for about 20% of its total device sales. However, due to the patriotic consumption trend triggered by the U.S.-China conflict, local corporations' products are gaining attention, and Apple’s influence has begun to gradually diminish.
Apple is seeking alternative markets to compensate for its sales in China. In the fourth quarter of last year, Apple entered the ranking for the first time by placing fourth in the Indian smartphone market. This is attributed to recent efforts to boost sales, including offering discounts on the iPhone series in the Indian market.
Nam Sang-wook, a senior researcher at the Korea Institute for Industrial Economics & Trade, explained, "India, which Apple sees as an alternative market, still has a smaller premium market size compared to China, so it cannot immediately compensate for the reduced sales."