Huawei, Xiaomi beat Apple by a huge margin in China as sales recover in October

Apple continues to struggle in China, even though the slump that smartphone makers were going through has ended and sales have recovered. In a surprising twist for everyone, Huawei and Xiaomi are doing really well

Chinese smartphone sales experienced a notable rebound in the first four weeks of October, marking an 11 per cent increase compared to the same period last year, according to a recent report by Counterpoint Research.

The recovery, after an eight-month slump, was propelled by leading domestic brands Xiaomi, Honor, and Huawei Technologies, outpacing rival Apple in sales growth.

Huawei emerged as a standout performer during October, achieving a remarkable 90 per cent year-on-year sales increase, primarily attributed to the success of its Mate 60 series devices. Counterpoint China analyst Archie Zhang highlighted the positive impact of effective marketing and media coverage surrounding Huawei’s surprise chipset, contributing to the overall growth. Despite U.S. sanctions, Huawei’s Mate 60 Pro, equipped with an advanced made-in-China 5G chip, played a pivotal role in the company’s resurgence.

Xiaomi also contributed significantly to the market recovery, with a 33 per cent increase in sales during the four-week period. The launch of Xiaomi 14, powered by Qualcomm’s new Snapdragon 8 Gen 3 chipset and featuring the company’s new Android-based operating system, HyperOS, further boosted sales. Xiaomi founder and CEO Lei Jun reported selling over one million units of the Xiaomi 14 in less than two weeks, making it the top-selling smartphone on Alibaba Group Holding’s e-commerce platform Tmall in the lead-up to the Singles’ Day shopping festival.

Honor, a Huawei spin-off that led smartphone sales in China in the third quarter, recorded a 10 per cent rise in sales during the same period. In contrast, Apple and other smartphone brands in China experienced a 12 per cent decline in sales, despite the release of the iPhone 15 in September.

Counterpoint’s senior China analyst, Zhang Mengmeng, indicated that the increase in overall demand suggests a potential exit from the extended slump in China’s smartphone market. The pace of recovery, however, hinges on companies’ ability to address constraints such as production issues.

Both Huawei and Apple are reportedly under pressure to meet the demand for their new devices, with Apple facing challenges related to specific color variations of the iPhone Pro Max, leading to extended wait times and higher prices on certain shopping platforms. Huawei, on the other hand, is grappling with shortages of its phones, resulting in customers waiting up to three months to receive the Mate 60 Pro.

Counterpoint’s senior manufacturing analyst, Ivan Lam, emphasized that Huawei’s ability to adapt to this “new normal” will not only impact its own growth but also play a crucial role in determining the broader market dynamics.

(With input from agencies)

Apple continues to struggle in China, even though the slump that smartphone makers were going through has ended and sales have recovered. In a surprising twist for everyone, Huawei and Xiaomi are doing really well

Chinese smartphone sales experienced a notable rebound in the first four weeks of October, marking an 11 per cent increase compared to the same period last year, according to a recent report by Counterpoint Research.

The recovery, after an eight-month slump, was propelled by leading domestic brands Xiaomi, Honor, and Huawei Technologies, outpacing rival Apple in sales growth.

Huawei emerged as a standout performer during October, achieving a remarkable 90 per cent year-on-year sales increase, primarily attributed to the success of its Mate 60 series devices. Counterpoint China analyst Archie Zhang highlighted the positive impact of effective marketing and media coverage surrounding Huawei’s surprise chipset, contributing to the overall growth. Despite U.S. sanctions, Huawei’s Mate 60 Pro, equipped with an advanced made-in-China 5G chip, played a pivotal role in the company’s resurgence.

Xiaomi also contributed significantly to the market recovery, with a 33 per cent increase in sales during the four-week period. The launch of Xiaomi 14, powered by Qualcomm’s new Snapdragon 8 Gen 3 chipset and featuring the company’s new Android-based operating system, HyperOS, further boosted sales. Xiaomi founder and CEO Lei Jun reported selling over one million units of the Xiaomi 14 in less than two weeks, making it the top-selling smartphone on Alibaba Group Holding’s e-commerce platform Tmall in the lead-up to the Singles’ Day shopping festival.

Honor, a Huawei spin-off that led smartphone sales in China in the third quarter, recorded a 10 per cent rise in sales during the same period. In contrast, Apple and other smartphone brands in China experienced a 12 per cent decline in sales, despite the release of the iPhone 15 in September.

Counterpoint’s senior China analyst, Zhang Mengmeng, indicated that the increase in overall demand suggests a potential exit from the extended slump in China’s smartphone market. The pace of recovery, however, hinges on companies’ ability to address constraints such as production issues.

Both Huawei and Apple are reportedly under pressure to meet the demand for their new devices, with Apple facing challenges related to specific color variations of the iPhone Pro Max, leading to extended wait times and higher prices on certain shopping platforms. Huawei, on the other hand, is grappling with shortages of its phones, resulting in customers waiting up to three months to receive the Mate 60 Pro.

Counterpoint’s senior manufacturing analyst, Ivan Lam, emphasized that Huawei’s ability to adapt to this “new normal” will not only impact its own growth but also play a crucial role in determining the broader market dynamics.

(With input from agencies)