Apple has bounced back in China after six consecutive quarters of declining sales, thanks to the promising start of the iPhone 8 series. According to a new report from Canalys, Apple sold 11 million iPhones in China in the third quarter, up from eight million in the corresponding quarter last year. The analyst firm said the iPhone 8 helped Apple to sell 40 per cent more smartphones in China. It also noted that the iPhone 8 sales in China are higher compared to the iPhone 7, which was launched last year.
In the second quarter, Apple’s revenues from China were down significantly. Although Apple’s position has improved significantly in China with the incoming of the iPhone 8, but that growth may be short lived. The company is unlikely to maintain the growth in Q4, warns Canalys. The impact of the iPhone X, Apple’s most ambitious device till date, isn’t going to boost the company’s prospects in the world’s most populous country. “While the iPhone X launches this week, its pricing structure and supply are ‘inhibiting’, Canalys research analyst Mo Jia said in a statement.
It’s somewhat clear that a handful of smartphone brands now dominate the market. Smartphone shipments in China fell by five per cent year over year to 119 million units, according to a Canalys report. Unsurprisingly, the most popular smartphone vendor in China is Huawei, which shipped 23 million units, followed by Oppo, Vivo, Xiaomi, and Apple. Lenovo, which once dominated the smartphone market in China, has unable to make it into the top five.
Jia added that Xiaomi is going to break the dominance of Huawei, Oppo and Vivo in the next quarter in its home market. It’s no surprise to see the progress Xiaomi has made in the last few months. The company has revamped its strategy by focusing on the retail front not only in China but in India as well. It also benefited with the back to back success of its devices such as the Redmi Note 4 and Redmi 4, especially in India. It won’t be a surprise to find Xiaomi overtaking Samsung to become the dominant smartphone player in the coming months.