It’s been nearly two years since Apple (AAPL) lost its top status in China, as tech companies like Huawei launched their 5G smartphones and took the No. 1 spot in the Chinese market. But today is a good day for Apple, as the maker of the iPhone is once again China’s market leader on the back of a 28% year-over-year gain in shipments in the fourth quarter.
According to Counterpoint Research, Apple saw strong sales in the fourth quarter from its iPhone 17 series. The only new product that didn’t see strong sales was the iPhone Air, which endured a delayed launch in China and only had a low single-digit share.
“The late launch and trade-offs between thinness and the feature set resulted in a slow start for the iPhone Air,” analyst Ivan Lam said. “But it’s a significant product, not only as an exploration into ultra-thin design, but also when considering the longer-term structural implications for the domestic market for eSIM smartphones.”
Huawei, which first eclipsed Apple in the first quarter of 2024, dropped to fourth place in the quarter as its shipments fell 13.7%. Overall, Apple had a 21.8% share of the Chinese market in the fourth quarter, with Oppo moving up to second place with a 15.8% share. Vivo had 15.7% of the market, followed by Huawei’s 14.6% share.
Now, the trick will be for Apple to maintain the performance. Huawei still won the crown for the full year, capturing 16.9% of the Chinese market, while Apple had 16.7%. But notably, Apple saw growth of 7.5% in China from a year ago, while Huawei only grew 1.7%.
Does Apple’s recovery in China change the investment thesis for Apple stock?
Headquartered in Cupertino, California, Apple is a dominant tech company that revolutionized mobile phones by unveiling the iPhone. Apple’s flagship product was groundbreaking because it provided phone services, texting, music, and internet access through a touchscreen interface that also linked to Apple’s App Store.
Apple still gets the majority of its revenue from the iPhone, but it also has many other popular…
..
