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Huawei sales are soaring in China as Apple sinks

By Diksha Madhok, CNN

New Delhi (CNN) — Huawei is not only making a roaring comeback in China, it is also on the verge of overtaking Apple in the world’s largest smartphone market.

The Shenzhen-based conglomerate, which has been a flashpoint in the escalating rivalry between Washington and Beijing, saw 70% year-on-year growth in its smartphone sales in China in the first quarter, while Apple’s sales declined by more than 19%, according to Counterpoint Research.

“Apple’s sales were subdued during the quarter as Huawei’s comeback has directly impacted Apple in the premium segment,” said Ivan Lam, senior research analyst at Counterpoint.

The iPhone maker, which led China’s smartphone market with a share of nearly 20% in the first quarter of 2023, has fallen to the third spot in the first three months of this year, according to Counterpoint. Its market share now stands at 15.7%, while Huawei’s has jumped to 15.5%, from 9.3% last year.

Huawei’s popular Mate 60 Pro smartphone made headlines last year when the US government sought more information about the model, which included a sophisticated processor. Its debut shocked industry experts who questioned how the company could acquire such a chip following sweeping efforts by the United States to restrict China’s access to foreign chip technology because of national security concerns.

Counterpoint’s data comes just days after another market research firm IDC said Apple’s global smartphone sales had tumbled 10% in the first quarter, mainly because of loss of momentum in China.

China is the largest market behind the United States for Apple, but the company is facing a challenging time in the world’s second-largest economy. Chinese consumers, who once would have considered Apple, are now turning to Chinese brands.

Overall smartphone sales in China grew 1.5% in the first quarter, according to Counterpoint. Local smartphone makers Vivo and Honor were the top two brands by market share.

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