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Update on iPhone Sales in China

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iPhone sales in China

In the previous part of this series, we read about CEO Tim Cook’s statement on Apple’s growth in China during July and August. According to the CNBC article, Cook also mentioned, “Growth in iPhone activations has actually accelerated over the past few weeks.”

The Greater China region has been a key growth driver for sales of the iPhone, Apple’s key product line. It represented ~63.2% of Apple’s revenue in fiscal 3Q15 ending June 27, 2015. iPhone unit sales grew by ~35%, year-over-year (or YoY), in fiscal 3Q15. However, in the Greater China (FXI) (EWT) region, iPhone sales rose by a significant ~87% YoY during the quarter.

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iPhone sales versus sales of other smartphone players in China

Despite a solid YoY growth figure for iPhones in the region, Apple’s market share rank in smartphone shipments to China dropped two notches sequentially in fiscal 3Q15. According to Counterpoint Research, its smartphone market share decreased from 17.8% in 1Q15 to ~12.2% during the quarter.

Xiaomi was the smartphone market leader, with a 15.8% market share in China. Xiaomi has investments from Qualcomm (QCOM) Ventures. Counterpoint also notes that Huawei had the second-largest market share of 15.4%. Samsung (SSNLF) was not in the top four players in this market in China during fiscal 3Q15.

IDC expects even lower growth in smartphone shipments in China in 2015

According to IDC’s (International Data Corporation) August 25, 2015, press release, China was the biggest global smartphone market by shipments in 2014. China represented 32.3% of total smartphone shipments during that year.

The market is expected to shrink to 29.6% of total global smartphone shipments in 2015. IDC has also tapered its anticipated smartphone shipment growth in China to 1.2% YoY in 2015.

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