Apple’s iPhone Drops Out of China Top Five as Local Rivals Soar

tech.hindustantimes.com:

Apple Inc. lost ground in China's smartphone market in the June quarter after local companies like Huawei Technologies Co. surged ahead.

iPhone shipments there slid 3.1% during the period, compared with an 11% year-on-year rise among Android-powered competitors, according to market tracker IDC. That squeezed Apple out of the top five handset makers in the country for the first time in four years.

The closely watched iPhone, central to Apple's consumer electronics empire, has struggled to sustain its usual popularity in China this year, with retailers and Apple itself resorting to deep discounts. The country's troubled economy has contributed to a slowdown in sales, while domestic champion Huawei led a resurgence in Android alternatives.

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Market research firm Canalys also reported a 3.9% decline in iPhone China shipments in the period.

Just months ago, Apple seemed on a path to recovery when Beijing government data showed a surge of more than 40% in April and May. But shipments dropped last month due to profitability concerns among its local partners, according to IDC. 

There's also a discrepancy between what the government and research firms like IDC report. The national statistics track the number of smartphones registered with the government before getting shipped to retail stores. IDC looks at the actual deliveries to retail partners, which is more closely correlated with sales.

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“We did see a YoY growth in the April-to-May shipments, particularly April, to prepare for the 618 shopping festival,” said IDC analyst Will Wong. “Nevertheless, the offline channel partners, which were more reluctant to burn marketing money, slowed down the pace in the last month of 2Q24 to ensure profitability.”

Still, assessing iPhone shipments is a difficult task —