Huawei reclaims No. 1 smartphone spot in China — and Apple returns to growth

In a significant shift in the technology landscape, Huawei has regained its position as the leading smartphone manufacturer in China for the second quarter of the year, according to recent data from Canalys. The company shipped 12.2 million smartphones from April to June, marking a 15% increase compared to the same period last year, and capturing an 18% share of the market. This development marks Huawei's first return to the top of the Chinese market since early 2024, demonstrating its resilience and recovery following the challenges posed by U.S. sanctions that had previously hampered its operations. Meanwhile, Apple also reported positive news, with shipments of 10.1 million units, representing a 4% rise year-on-year. This growth signifies Apple's first resurgence in the Chinese market since late 2023, a crucial area for the company amid fierce competition from local brands like Huawei and Xiaomi. These shipment figures—while not directly indicative of sales—serve as a barometer for market demand. As Apple prepares to release its quarterly earnings this week, investors are keenly observing its performance in China, where it has faced numerous obstacles. Huawei's aggressive strategy and the introduction of various smartphone models, coupled with the rollout of its self-developed HarmonyOS 5, have intensified the competitive landscape. To counteract this, Apple has adjusted its pricing strategy for the iPhone 16 series in China. Discounts from Chinese e-commerce platforms and increased trade-in values for older iPhone models have contributed to its recent growth. Such measures are expected to stabilize Apple's market position, which has seen a decline in share prices of approximately 14.5% this year due to concerns about market dynamics and geopolitical challenges. Analyst Lucas Zhong from Canalys highlighted that Huawei's expansion of its ecosystem through HarmonyOS 5 could further enhance its user base while increasing the demand for system compatibility and user experience. As both companies vie for dominance, the smartphone market in China is poised for an exciting future.