In November, Apple faced a dip in its global iPhone market share, with increased competition in China being a significant factor, according to research by Counterpoint.
The iPhone’s worldwide market share declined by 50 basis points YoY and 300 basis points compared to October, settling at 20.8%.
Notably, the high-end gadget’s market share in China dropped to 21.3%, down by 320 basis points. China is crucial for Apple, contributing about a fifth of its total revenue.
This decline is attributed to tough competition from local rivals like Huawei and Xiaomi, which have been successful in attracting customers away from the iPhone.
Additionally, Chinese agencies and businesses have discouraged the use of foreign devices, impacting Apple’s market presence.
Counterpoint highlighted that overall smartphone demand remains soft due to factors such as component shortages and extended replacement cycles.
However, premium smartphones (priced at $600 or above) are showing signs of growth, thanks to promotional offers and financing options making flagship phones more accessible. (SEE: Global Premium Smartphone Market Continues to See Record Sales in 2023)
Varun Mishra, Senior Analyst at Counterpoint, noted a shift in consumer buying patterns towards high-quality devices that offer longer-term value. Despite facing challenges, Apple maintains its status as the “undisputed leader” in the premium smartphone market, even though its share in this segment decreased last year due to the popularity of Huawei’s Mate 60.
As smartphone preferences evolve, are consumers willing to invest more for a device that delivers quality and longevity?