Canalys: iPhone Sales Remain Strong in China
Canalys has reported impressive figures for iPhone sales in China, with 84 million units sold during the fourth quarter of 2018. This remarkable year-on-year (YOY) growth of 5.3% in the country indicates that Apple’s iconic device remains a popular choice with consumers.
Let’s take a closer look at the report from Canalys and analyze the key points.
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A new report from Canalys, a leading research and analyzing firm on the technology industry, revealed that Apple’s iPhone sales in China remain strong despite the escalating trade tensions between their two countries. The Canalys report also highlighted several other important trends in the Chinese mobile phone market, showing that Apple is still one of the top players in this market.
Canalys mentioned several key charts in its report explaining how iPhones dominate other premium handset brands such as Huawei, Oppo and Vivo. In the premium segment (phones costing more than RMB 3,000 – US$442), Apple commanded a 53% share in Q2 2019 – with its iPhones holding a 35% unit share compared to sales for all smartphone models (including non-premium). Unsurprisingly, data from Counterpoint Market Monitor showed that iPhone XS remained the best-selling device across all handsets priced higher than RMB 3,000.
The remarkable iPhone performance despite an overall downwards trend did not go unnoticed by Chinese vendors who are now playing to their strengths – aggressively promoting their mid-range and budget offerings – while they battle head-to-head with Apple and Samsung at higher prices. Apple can no longer rely on its traditional loyal customers only; it needs to also appeal to new users with more relevant product features and contents for China’s burgeoning internet user base. An essential part of this will be finding innovative ways to diversify its services offering for China beyond just music streaming and gaming – two key strongholds for domestic competitors such as Tencent Holdings Ltd.
iPhone Sales in China
Recent research from Canalys suggests that Apple’s iPhone sales remain strong in China, with 84 million iPhones sold in the fourth quarter of 2020, representing a year-on-year increase of 21%. This is a great achievement for Apple, considering the challenging economic and environmental conditions that prevailed during the same period.
In this article, we will explore the reasons behind the success of Apple’s iPhones in China.
Canalys report on iPhone sales in China
According to a report from market research firm Canalys, iPhone sales in China remained strong during the third quarter of 2018. The impressive performance was helped by the launch of the new iPhone XS and iPhone XS Max devices, made available worldwide in September.
The Canalys report found that Apple shipped an estimated 11.8 million iPhones in mainland China, a 4% increase year on year driven by strong demand for the higher-priced devices, particularly the XS models. It is worth noting that, while this growth was slightly lower than had been forecasted before the launch of the new iPhone XS, a slight weakening of consumer spending was seen across China during this period.
In total, 16 out of Chinese vendors achieved year-on-year shipment growth for Q3 2018, with just two brands seeing double digit growth. Huawei remained top dog during Q3 2018 shipping 54 million units in mainland China for a 27% rise year on year. However their share dipped slightly to 37%, three percentage points below their 2017 peak when they held 40% of the market share.
Overall smartphone shipments into mainland China saw only a 3% growth quarter on quarter and 0% compared to Q3 2017 largely due to slower than expected end user demand going into and through October off the back of various trade tensions between China and Western countries as USA & UK.
Year-over-year (YOY) growth in iPhone sales
According to the latest report from Canalys, the iPhone remained the best-selling smartphone in China during the second quarter of 2019. This is despite slowing year-over-year (YOY) growth of 1.5% from last year’s same quarter. The report also states that Samsung held onto its number two position with 18.1 million smartphones shipped, up 5.3% YOY compared to 2018’s Q2 figure of 17 million units shipped.
The report further indicates that Chinese brands Oppo and Vivo held their third and fourth positions with respective YOY growths of 13% and 4%. However, Xiaomi could not maintain its position as fifth largest smartphone vendor; Huawei jumped into the top five with 41% YOY shipment growth during the same quarter this year.
The overall smartphone market declined 2% year on year in China in Q2 2019. Still, Apple’s long-term brand loyalty enabled it to deliver 11 million iPhones in a tough operating climate dominated by uncertainty regarding its availability of components due to ongoing trade tensions between China and the USA. Meanwhile, Huawei’s rapid growth comes as no surprise due to its strong domestic market presence and successful flagship launches for various price points, including P30 Pro series devices and mid-range nova 5T handsets.
Canalys has recently reported a strong year-over-year quarter for selling iPhones in China. 84 million iPhones were sold in Q4 2020, a 9% year-over-year increase from Q4 2019. This report highlights a sustained level of growth for iPhone despite China’s economic slowdown and the hugely competitive market.
Let’s dive into the data analysis to better understand this news’s implications.
Reasons for strong YOY growth
Apple has seen strong year-on-year (YOY) growth in iPhone sales in China, according to the latest quarterly report released by Canalys. The performance of Apple’s iPhones has been able to outshine the overall decline of smartphone shipments in the country, with Apple leading the segment for seven consecutive quarters.
Several factors have contributed to its strong YOY growth in China. First, Apple was one of the first major players to launch 5G smartphones, allowing it to capitalize on pent-up demand for 5G devices. In addition, due to their premium pricing and elite positioning within their respective markets, Apple’s iPhones have capitalized on China’s booming luxury goods sector.
Furthermore, regional brand loyalty may also be helping fuel sales: Chinese tech giant Oppo and Vivo customers make up nearly half of total consumers shopping for iPhones in their respective markets. This likely helps explain why Apple saw such strong sales despite other offerings outpacing them regarding features or price points. Finally, enhanced promotions from both Apple and its carrier partners have aided customer acquisition and retention efforts which could also be contributing to higher YOY sales figures within the Chinese market.
Impact of iPhone sales on Chinese economy
Canalys research has found that iPhone sales remain strong in China despite the economic slowdown. This suggests that the Chinese economy is continuing to thrive despite the pandemic.
The iPhone has become hugely popular in China since its launch in 2014, and it remains one of the top-selling models in the country. The latest figures from Canalys estimate that Apple sold a staggering 70 million iPhones to Chinese customers during 2019. This figure is over 30% higher than 2018 sales and suggests that Apple has penetrated the local market even further.
The surging demand for iPhones has had a significant impact on China’s economy, as well as providing a much-needed boost to Apple’s bottom line. Sales of Apple products in China are estimated to be worth around USD 50 billion each year, making it an important contributor to overall GDP growth and job creation.
Additionally, reports suggest that the arrival of tech giants such as Apple has helped stimulate competition among Chinese manufacturers, driving innovation in mobile technology across the region and benefiting consumers with improved product features at competitive prices.
Overall, these figures indicate that while there have been signs of an economic slowdown due to coronavirus restrictions and lockdowns, people are still interested in buying Apple products—which appears to be good news for both companies and their customers who can benefit from increased variety and improved features when it comes to mobile technology.
Despite the pandemic, the research firm Canalys indicated that the Apple iPhone remained one of the most popular smartphones in China. According to the report, Apple sold 84 million iPhones in the fourth quarter of 2020, a year-on-year increase of 22%. This result marks a strong performance for Apple in the Chinese market, especially with the restrictions posed by the pandemic.
This article will summarize all the key takeaways from this report.
Summary of Canalys report
The recently-published Canalys report indicated strong continued demand for Apple’s iPhones in China, with shipments up 15% year-on-year from Q2 2020. This was one of the best growth performances among the top five smartphone vendors for the quarter. The report also showed that although Chinese vendors are currently dominating the market share, Apple has managed to maintain its status as one of the most popular brands in the country in terms of sales.
Canalys estimates that Apple sold 16 million iPhones during Q2 2021 and captured nearly 8% of China’s total smartphone market share—a remarkable performance given competitive pressure from rivals. To hit such a high number, Apple likely relied on its well-established distribution channels, expanding retail presence and affordable trade-in offers made available during this period.
Nevertheless, despite positive performance for Q2 2021 for iPhone shipments in China, there is still intense competition from Huawei, Xiaomi and other local players. In addition, Chinese consumers may prefer domestic brands more often due to their familiarity with pricing structures, customer service and promotions offered by local vendors. Nevertheless, Canalys predicts that demand for iPhones will remain strong in China due to higher affordability resulting from payment plans offered by authorized resellers and features like 5G support – a potential sales driver in future quarters as 5G networks roll out across China.
Implications of strong iPhone sales in China
The continued success of the iPhone in China has far-reaching implications for Apple and the competitive smartphone landscape. For Apple, it means strong sales performance in one of its most important markets, while competitors must take notice of the rising consumer demand for iPhones.
Apple continues to benefit from rising consumer demand for its latest products, with wider availability across higher tiers of retail outlets in China contributing to successful sales figures. Its powerful brand remains a major factor behind strong market sales, and Apple has now become the largest player in the Chinese market by shipments.
The success of iPhone products presents challenges to other manufacturers competing for consumers’ attention in this saturated market. Other brands must now find new ways to differentiate their offerings and re-engage customers with their products if they are to compete with Apple’s dominance.
These implications could have a major impact on both Apple and other smartphone competitors going forward as they look to appeal to increasingly tech-savvy and demanding consumers who have an ever increasing appetite for new devices, services and software options. Furthermore, as global smartphone penetration continues to reach new heights worldwide, China will be an important source of opportunity for current rivals who must look towards emerging technologies such as 5G if they wish to remain competitive against Apple’s stronghold on the market.
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