In context: Apple has chanced on extra success in China than most US companies, especially in the high-cease smartphone phase the build aside Cupertino takes nearly half of all gross sales in the country. Having such a super prick of the arena’s ideal telephone market has lengthy been cited as why Apple often kotows to China’s authoritarian government.
As reported by the South China Morning Post, Apple grabbed 46% of China’s premium smartphone phase (handsets sold over $400) in the 2nd quarter in consequence of of sturdy iPhone 13 gross sales, according to Counterpoint Research. That is an increase of 3% when put next to the identical length one 365 days earlier.
It was even higher news in the extremely-high-cease phase of smartphones priced $1,000 or bigger, which saw iPhone gross sales increase 147% 365 days-over-365 days. It was additionally an glowing quarter for Samsung, which saw gross sales jump 133% YoY during the identical length.
Premium smartphone gross sales in China, courtesy of Counterpoint
“Each [Apple and Samsung] benefited from Huawei’s decline and the shift in take developments in direction of premium telephones in China,” said Counterpoint analyst Zhang Mengmeng.
China has lengthy been Apple’s 2nd-largest customer after the US, and Cupertino depends on its manufacturing industry. During the escalating commerce battle between the two international locations in 2019, when Donald Trump added Huawei to a commerce blacklist and slapped billions of greenbacks price of import tariffs on Chinese items, there occupy been considerations the Asian nation would retaliate by banning production of Apple devices, a straggle that would perchance occupy dropped the firm’s profits by 30%.
The scale of iPhone gross sales in China, a country which, according to Statista, had nearly a billion smartphone customers closing 365 days, is even handed why Apple often acquiesces to demands placed on it by the government. It previously eliminated VPNs, scream apps, and news apps from its App Store in consequence of the dispute being unlawful in China.
A bid from closing December claimed CEO Tim Prepare dinner signed a secret 5-365 days deal price $275 billion with Chinese officials in 2016 that would see Cupertino invest in the country’s financial and technological pattern. In alternate, Apple’s operations and products and providers would now not face the identical intensive regulatory scrutiny Chinese companies often heap on international companies.
Counterpoint’s bid additionally notes that Huawei, once China’s largest smartphone supplier, continues to lose flooring in its dwelling nation in consequence of US sanctions. The firm retains losing money despite diversifying its product portfolio. Huawei’s market fragment in China has fallen to 11%, pushing it from 2nd to third build aside. Vivo, meanwhile jumped into the distance left by Huawei and moved into 2nd space. Honor was fourth, followed by Xiaomi and Oppo.
