Apple loses ground in China’s smartphone market

Apple Inc lost ground in China’s smartphone market in the June quarter after local companies like Huawei Technologies Co surged ahead, reports Bloomberg.

iPhone shipments there slid 3.1 per cent during the period, compared with an 11 per cent year-on-year rise among Android-powered competitors, according to market tracker IDC. That squeezed Apple out of the top five handset makers in the country for the first time in four years.

The closely watched iPhone, central to Apple’s consumer electronics empire, has struggled to sustain its usual popularity in China this year, with retailers and Apple itself resorting to deep discounts. The country’s troubled economy has contributed to a slowdown in sales, while domestic champion Huawei led a resurgence in Android alternatives.

Market research firm Canalys reported a 3.9 per cent decline in iPhone China shipments in the period. Counterpoint Research, which tracks sales to end users, saw a 5.7 per cent drop for the iPhone.

Just months ago, Apple seemed on a path to recovery when Beijing government data showed a surge of more than 40 per cent in April and May.

But shipments dropped last month due to profitability concerns among its local partners, according to IDC. There’s also a discrepancy between what the government and research firms like IDC report. The national statistics track the number of smartphones registered with the government before getting shipped to retail stores.