Apple’s market share in China drops for the first time

Company - Mohit Shah - Feb 07,2017

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apples market share in china drops for the first time

According to market data from IDC, Apple’s market share, as well as shipment volume, dropped for the first time last year.

Apple experienced year-on-year decline in China for 2016; the tech giant’s shipments volume to China also fell from 58.4 million units in 2015 to 44.9 million in 2016.

In the meantime, its market share also slumped 4 percentage points to 9.6 percent, even as the smartphone market in China grew 9 percent for the full year, as per the latest IDC Quarterly Mobile Phone Tracker.

According to the analysis, the leading vendors were OPPO, vivo and Huawei. OPPO has grown very swiftly; statistics reveal that in 2015 it sold 50 million smartphones, breaching into the list of top 10 smartphone brands worldwide. This year it managed to vend 78.4 million units in the Chinese market, topping Huawei's count of 76.6 million. It was also noted that OPPO and vivo primarily target a younger audience, according to the IDC report.

Last week, Apple announced its earnings results from the first fiscal quarter which concluded on December 31. The company displayed record quarterly revenue of $78.4 billion. Also, the data highlighted Apple generated $16.2 billion in the Greater China segment in that particular quarter, as compared to $18.37 billion in the first quarter of 2016. This indicates a year-on-year drop of 12 percent.

Apple was contacted for comment on the IDC report, but the company still hasn’t responded.

As per the analysis by the IDC report, the cause for Apple's market share decline in 2016 was that several consumers were holding for the new iPhone to be launched this year. The report forecasts the 10-year anniversary iPhone will transform some Android users in China to the iPhone.