Apple's iPhone shipments in China surge 20pc in Q1, data shows

Apple's iPhone shipments surged 20 percent in China in the first quarter, marking the strongest growth among major vendors, despite an overall decline as rising prices of memory chips boosted costs, data from Counterpoint Research showed.

Overall smartphone shipments dropped 4 percent in the world's largest smartphone market in the period from January to March, hit by supply chain disruptions and the soaring chip prices.

But telecoms giant Huawei and Apple, the two largest vendors in the market, bucked the trend, reporting growth of 2 percent and 20 percent respectively.

"As most rivals raise prices, Apple stands out for value, with Chinese consumers knowing its products last at least three years," said Ivan Lam, senior analyst at Counterpoint Research.

Huawei's shipments were lifted by strong demand across both its high-end and budget ranges, including the Enjoy 90 series, giving it a 20 percent market share in the quarter, Lam said.

Huawei retained the top spot, followed by Apple with a share of 19 percent.

Smartphone vendors in China have raised prices for budget handsets to protect margins in the battle with elevated memory chip costs.

Xiaomi slipped to sixth place with a plunge of 35 percent in shipments. Lam attributed the sharp decline to a high base effect, after Xiaomi benefited from aggressive price cuts and government subsidies in the corresponding period last year.

Shipments by Oppo and Honor also fell 5 percent and 3 percent respectively, though Vivo saw a rise of 2 percent, buoyed by strong sales during the Lunar New Year holiday.

Lam expected more headwinds for the market in the second quarter, particularly as Chinese brands look to raise prices further.

"However, we expect Apple and Huawei to fare relatively better, with Huawei potentially seeing further shipment growth driven by solid demand for its lower-end devices," Lam said.

Reuters