In September 2021, following the launch of the iPhone 13, Apple became the biggest smartphone maker in China. An event that the tech media covered with great enthusiasm. But this victory, as impressive as it is, will not remain for long.
In this article, we’ll uncover why Apple is winning in China and discuss how Android phone makers may beat the American tech giant in the coming months.
Why Apple Is Currently Winning in China
Huawei Is No Longer a Big Competitor
Huawei’s downfall is not news to anyone at this point. Where once the Chinese multinational conglomerate was a market leader, it now finds itself struggling to stay in business after being banned from doing business with US companies—mainly Google. Seeing this, Apple capitalized on Huawei’s misfortune.
The reason any other tech giant couldn’t capture this market is because of the iOS ecosystem. Software seamlessness is a major advantage iOS has over Android, and it’s a quality that the Chinese market really appreciates since most of the online transactions happen via mobile.
Apple Is a Big Customer for Chinese OEMs
Apple is one of the biggest, if not the biggest, customers to many renowned OEMs like Foxconn, TSMC, Sony, Samsung, Qualcomm, Luxshare, Intel, and more. Many of these are Chinese companies, with some of them so tightly linked to Apple that any success the company earns directly helps prosper their business too.
Put simply, there is a clear incentive for Chinese tech giants to help Apple succeed. This symbiotic relationship helps ensure that Apple’s business partners will reliably do their part in conforming to whatever business strategy the American giant decides to pursue, with China being the current target market.
China Has a Political Interest in Helping Apple
For a country like China, you’d expect Apple to be the last candidate to stand as a market leader, given the obvious unstable political relations between China and the US. And yet, China seems to be quite welcoming to Apple. This is because of Chinese smartphone companies’ reliance on Google services.
If the US bans more Chinese companies, China will lose its hold on fast-growing and lucrative markets like India, Nepal, Brazil, and Pakistan. So, letting Apple win is a damage control strategy to improve China’s relations with the US by accepting foreign investment and promoting trade—for now, at least.
How Android Will Beat Apple in China
Apple’s Sales Are Cyclical
Apple’s sales follow a strict cyclical trend with fall being its peak season. If you take a look at the graph at the beginning of the article, you’ll see how Apple’s sales share hikes at the release of a new iPhone series, but dips soon after.
Given the iPhone 13’s success, Apple penetrated the Chinese market quite well. But as iPhone sales go back to normal in the coming months, those impressive numbers will disappear.
Chinese Brands Are Shifting Focus to Flagships
We’ve covered before in great depth how Chinese brands penetrate new markets. But lately, it seems like their strategy has evolved. Alongside offering budget phones, some of these brands are now devoting more resources to R&D to create bleeding-edge flagships and deliver a premium experience.
We saw the Realme GT 2 Pro, the Oppo Find X3 Pro, the Vivo X70 Pro+, and so many more. Just a few years ago, all of these brands were known solely for their value-for-money proposition. But as their portfolios expand to add top-tier flagships, Apple’s brand in China as a premium smartphone company will face serious competition.
Apple Is Late to the Foldable Trend
Though Apple is a clear trendsetter in the tech industry, it’s also notorious for being late to a lot of new smartphone trends. One of such is the foldable phone trend which Samsung loves to remind us about and expects to become mainstream soon.
Only this time, Chinese brands are not waiting for Apple to confirm this trend like they usually do. We’ve already seen the Oppo Find N in action, which is frankly one of the most compelling foldable phones out there.
Other Chinese brands like Xiaomi have plans to release foldable phones very soon, possibly in 2022. The world is desperately waiting for the foldable iPhone. Problem is, there is none.
Apple’s Dominance in China Is Temporary
Apple’s success in China is very commendable, but it’s one thing to get to the top and a whole other thing to remain there. It’s very likely that the American giant will be outcompeted by either Oppo or Vivo in the coming months as iPhone 13 sales slow down.
Until then, Apple will gladly enjoy all the press it can get. Just like this one.
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