The smartphone market has been plagued by headlines like “sluggish sales” and “cold reception.” Many blame consumers, claiming it’s due to a lack of disposable income. But is this truly the case?
With this year’s Singles’ Day shopping festival (Double 11) wrapped up, how did the domestic smartphone market perform? Let’s look at the data. According to a recent report by Strategy Analytics, total smartphone shipments in China during Double 11 amounted to 9 million units, a 35% decline year-over-year. However, Apple remained strong, continuing to dominate the premium smartphone segment. iPhone sales reached 3.5 million units during the festival, outperforming the market, with estimated revenue of ¥25.1 billion (about $3.45 billion).
Apple ranked first in both sales share (39%) and revenue share (68%), showcasing its dominance.
Why Are iPhones Still Thriving?
If the smartphone market is struggling, why is Apple bucking the trend? During Double 11, the average selling price of an iPhone was ¥7,150 (about $980). Clearly, price isn’t deterring buyers. Apple’s success highlights a gap in the domestic market: without Huawei, the premium segment seems to lack strong competition, leaving Apple as the unrivaled leader.
Despite ongoing criticism of Apple’s perceived “lack of innovation,” consumer behavior tells a different story. Each new iPhone launch stirs excitement among Chinese consumers. This is a lesson domestic brands must study carefully.
The Huawei Factor
Before its supply chain was disrupted, Huawei was Apple’s fiercest competitor. Huawei consistently outpaced iPhone in China’s premium market thanks to its in-house Kirin chips and its “backup” HarmonyOS. Huawei’s technological edge allowed it to go head-to-head with Apple.
In contrast, other domestic brands heavily rely on third-party processors like Qualcomm’s Snapdragon 8 Gen 1, Snapdragon 8 Gen 2, or MediaTek’s Dimensity 9000. This results in a sea of nearly identical devices, where competition boils down to “who launched it first.” There’s little differentiation to attract premium buyers.
Apple’s edge lies in its exclusivity. Its processors and iOS ecosystem are proprietary and unmatched, creating an irreplaceable user experience. This is why consumers are willing to wait six weeks for an iPhone 14 Pro, a level of loyalty domestic brands struggle to achieve.
What About Domestic Brands?
After Huawei was sidelined, other domestic manufacturers stepped up, vowing to challenge Apple in the high-end market. While their determination is evident, the results suggest they’re still falling short. The core issue lies in self-research and innovation.
In the short term, Huawei remains the most promising hope for domestic high-end smartphones. With the HarmonyOS ecosystem and a growing domestic supply chain, Huawei could regain its footing if it overcomes the chip bottleneck. Only then can Chinese brands have a real shot at dethroning Apple in the premium segment.
What do you think? Share your thoughts in the comments!
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