For the first time in recent years, Apple’s iPhone sales account for half of China’s premium smartphone market.
For the first time in recent years, Apple’s iPhone sales accounted for half of China’s high-end line smartphone market as US tech giants lead Chinese brands, especially Huawei is facing a crisis of survival as the world economy is heading towards a protracted recession.
Strong iPhone 13″ sales helped Apple accounting for 46% of the Chinese market for smartphone cost more than 400 USD ( About 31,000), while the Chinese company Vivo jumped to second place for the first time as rivals tried to fill the hole left by Huawei, media reports here say.
According to a report released by global industry analysis firm Counterpoint Research, iPhone sales accounted for half of all smartphones sold for more than $400 in China in the second quarter, reinforcing its leading position. head of the US tech giant as the leading supplier of premium handsets in the country. on Wednesday.
Most notably, Huawei has struggled to sell newly launched phone models since it was sanctioned by the US in 2019.
The founder of Huawei Technologies, Ren Zhengfei, recently said that his company is facing a crisis of survival as the world economy faces a protracted recession.
Huawei fell to third place with 11% market share in the quarter, down from 19% a year earlier, the Hong Kong-based South China Morning Post reported on Thursday.
Huawei, formerly China’s largest smartphone vendor, has seen its once lucrative smartphone business face a severe crisis since its inception. WE blacklist it.
Meanwhile, a leaked internal memo from the Huawei founder forecast a bleak outlook for the global economy and his company went viral in China.
The memo sent to employees paints a bleak picture of a world entering a recession. It calls on employees to focus on the survival of the company and give up frivolous thinking.
“The next 10 years will be a traumatic period in history, when the world economy going into recession… Huawei needs to reject any overly optimistic forecasts and make existence their most important creed for the next three years,” the Post quoted Ren as saying in the memo. .
Huawei has faced a severe crisis due to heavy US sanctions imposed over the past few years, slowing growth even in the lucrative Chinese market.
Ren’s new warnings come amid new challenges, as Beijing continues to control the Covid-19 draconian despite the Chinese economy is in its worst shape in decades.
China’s gross domestic product grew by just 0.4% in the second quarter, the worst since the first quarter of 2020, as the coronavirus shut down large swaths of the country, causing GDP to shrink by 6. 8%.
Huawei’s revenue continued to decline in the first half of 2022, down 5.9% from a year ago to 301.6 billion yuan ($44.7 billion), while net profit margin fell to 5 %, compared with 9.8% in the same period last year. five.
China’s burgeoning smartphone market has been battered by a slowing economy and disruptions in supply chains, which have been exacerbated by governments, the Post reports. strict control policy of the country’s Covid-19 epidemic.
Sales of premium smartphones in China fell 10% year-on-year in the second quarter. The overall handset market fell 14%, the steepest drop in nearly a decade due to the slowdown in the Chinese economy.
Counterpoint analyst Zhang Mengmeng said several regions, including Shanghai and the surrounding regional manufacturing hub of the Yangtze River Delta, were partially closed in the second quarter to prevent the spread of the virus. Omicron variant.
In the ultra-premium segment, defined as a smartphone priced at $1,000 ( 79,847) or higher, iPhone sales are up 147% year over year. SAMSUNG has also enjoyed rapid growth, with sales of the same type increasing 133 percent during the period, the Post said, citing a Counterpoint Research report.
“Both [Apple and Samsung] Zhang said.
Appleexpected to launch iPhone 14 on September 7 in the US, has maintained a strong position in the Chinese smartphone market amid domestic competitors facing many challenges.
“Apple and Huawei have been competing for first and second place for a long time. But now, other Chinese giants [manufacturers] has started targeting the premium segment,” said Counterpoint analyst Ivan Lam.
