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Why Apple’s China Woes Could Continue despite Its iPhone X

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iPhone X will hit stores around the same time as Huawei’s Mate 10’s launch

While Apple’s (AAPL) highly anticipated iPhone X is set to launch on November 3, the tech giant remains wary of the challenge it faces from Asia. The company has seen its market share in the Greater China region decline over the last few years, as competition from local handset makers like Huawei, Vivo, and Oppo have been increasing.

Huawei unveiled its flagship Mate 10 on October 16, 2017. The Mate 10 features an OLED display like the iPhone X, and it also has AI abilities, which could set the Mate 10 apart. Also, it will be less expensive than the iPhone X, which may sway Chinese customers toward the Mate 10.

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Apple’s struggles in China could continue

According to IDC, Huawei has seen its market share increase in China and globally. It now has the third-highest market share in terms of volume. Huawei is still well behind Samsung (SSNLF), which sold nearly 80 million units in 2Q17, according to IDC.

Apple sold 41 million units during the same period, while Huawei was slightly behind after shipping 38.5 million units. According to IDC, the Chinese giant held 11.3% of the global market in 2Q17, behind Samsung’s 23.3% and Apple’s 12.0%.

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