IPhone: How the rise and rise of Huawei is impacting iPhone sales in China

It seems like Huaweiis back with a bang — at least in China — as it has emerged a rather popular brand, as per a report by Counterpoint. “The clear standout in October has been Huawei with its turnaround on the back of its Mate 60 series devices. Growth has been stellar with its new launch marketing and strong media coverage around its ‘Made in China’ chipset,” noted China analyst Archie Zhang.“Demand continues to be high double-digits and we’re also seeing a halo effect, with other models from the vendor performing well.”
The rise of Huawei has hit Apple’s iPhone sales in China. According to the report, in October, Huawei smartphone sales grew by 83%. On the other hand, Apple’s growth was limited to 11% in October, which is a bit slow considering the new iPhone 15 series was launched only a month earlier.

Supply chain issues for Apple

According to Counterpoint, Apple has been facing some issues, especially with the iPhone 15 Pro Max. Specific colour variants of the iPhone 15 Pro Max are facing delayed shipments, “resulting in extended wait times and higher prices on some e-commerce platforms.”
Huawei is also facing supply chain issues but for other reasons. According to the report, Huawei stock shortages are the result of much higher-than-expected demand and the resulting strain from its component supply chain and EMS providers. “Huawei’s ability to scale up to this new normal will be a major determinant not just for their own growth, but for the broader market,” said Ivan Lam, senior analyst for manufacturing. “How they managed the 11.11 period is Huawei’s first true test. Indicators are showing overall sales to be up but how much Huawei contributed to that outperformance is the tell for the rest of the quarter,” he added.
Overall, the Chinese smartphone market is showing good signs of recovery as it grew 11% YoY in October.

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