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Apple’s China Market Share Shrinks as Huawei Surges, Data Shows 

A woman walks past a logo of Apple Inc in Wuhan, Hubei province July 24, 2013. (Reuters)
A woman walks past a logo of Apple Inc in Wuhan, Hubei province July 24, 2013. (Reuters)
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Apple’s China Market Share Shrinks as Huawei Surges, Data Shows 

A woman walks past a logo of Apple Inc in Wuhan, Hubei province July 24, 2013. (Reuters)
A woman walks past a logo of Apple Inc in Wuhan, Hubei province July 24, 2013. (Reuters)

Apple's market share in China shrank by two percentage points in the second quarter of 2024, as the tech giant faced intensifying competition from rivals like Huawei, according to data from market research firm Canalys.

The decline underscores the difficulties the US tech giant faces in its third-largest market.

Huawei's smartphone shipments surged 41% year-on-year in the quarter, bolstered by the launch of its new Pura 70 series in April.

The Canalys data, while not providing specific shipment figures for Apple, showed that the company's market share in China dropped to 14% in the second quarter of 2024, a decrease from 16% in the same quarter of 2023.

As a result of this decline, Apple's ranking in the Chinese smartphone market fell from third to sixth place.

Overall, China's smartphone shipments rose by 10% in the quarter, Canalys said. Vivo was the top vendor with a share of 19%, followed by Oppo, Honor and Huawei with 16%, 15% and 15% respectively.

"Domestic manufacturers have demonstrated market leadership, occupying the top five positions in the mainland Chinese market for the first time in history," said Lucas Zhong, research analyst at Canalys.

"On the other hand, Apple faces growth pressure in the Chinese market and is actively focusing on optimizing channel management."

Huawei made a comeback to the high-end smartphone segment last August with the release of a device powered by a domestically-made chip, defying US sanctions that have cut off its access to the global chipset supply chain.

In an effort to boost sales, Apple has ramped up its discounting efforts this year to entice consumers. The US company launched an aggressive campaign in May, doubling the scale of an earlier promotion in February and offering price cuts of up to 2,300 yuan ($318.84) on select iPhone models.

Analysts expect Huawei's strong performance to continue throughout the year. Canadian research firm TechInsights projected earlier this year that Huawei's overall smartphone shipments in China will exceed 50 million units in 2024, with the Pura 70 series accounting for 10 million of those shipments.

That would make Huawei the No. 1 seller with a 19% market share, up from 12% in 2023, TechInsights has said.

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Technology

US May Target Samsung, Hynix, TSMC Operations in China

A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)
A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)
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US May Target Samsung, Hynix, TSMC Operations in China

A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)
A man walks past the logo of Samsung Electronics displayed outside the company's Seocho building in Seoul on April 30, 2025. (Photo by Jung Yeon-je / AFP)

The US Department of Commerce is considering revoking authorizations granted in recent years to global chipmakers Samsung, SK Hynix and TSMC, making it more difficult for them to receive US goods and technology at their plants in China, according to people familiar with the matter.

The chances of the United States withdrawing the authorizations are unclear. But with such a move, it would be harder for foreign chipmakers to operate in China, where they produce semiconductors used in a wide range of industries, Reuters said.

A White House official said the United States was "just laying the groundwork" in case the truce reached between the two countries fell apart. But the official expressed confidence that the trade agreement would go forward and that rare earths would flow from China, as agreed.

"There is currently no intention of deploying this tactic," the official said. "It's another tool we want in our toolbox in case either this agreement falls through or any other catalyst throws a wrench in bilateral relations."

Shares of US chip equipment makers that supply plants in China fell when the Wall Street Journal first reported the news earlier on Friday. KLA Corp dropped 2.4%, Lam Research fell 1.9% and Applied Materials sank 2%. Shares of Micron, a major competitor to Samsung and SK Hynix in the memory chip sector, rose 1.5%.

A TSMC spokesman declined comment. Samsung and Hynix did not immediately respond to requests for comment. Lam Research, KLA and Applied Materials did not immediately respond, either.

In October 2022, after the United States placed sweeping restrictions on US chipmaking equipment to China, it gave foreign manufacturers like Samsung and Hynix letters authorizing them to receive goods.

In 2023 and 2024, the companies received what is known as Validated End User status in order to continue the trade.

A company with VEU status is able to receive designated goods from a US company without the supplier obtaining multiple export licenses to ship to them. VEU status enables entities to receive US-controlled products and technologies "more easily, quickly and reliably," as the Commerce Department website puts it.

The VEU authorizations come with conditions, a person familiar with the matter said, including prohibitions on certain equipment and reporting requirements.

“Chipmakers will still be able to operate in China," a Commerce Department spokesperson said in a statement when asked about the possible revocations. "The new enforcement mechanisms on chips mirror licensing requirements that apply to other semiconductor companies that export to China and ensure the United States has an equal and reciprocal process.”

Industry sources said that if it became more difficult for US semiconductor equipment companies to ship to foreign multinationals, it would only help domestic Chinese competitors.

"It’s a gift," one said.