Huawei has recently reclaimed its dominance in China's smartphone market, toppling rivals and industry leaders in the initial weeks of this year. The remarkable resurgence comes after the US imposed sanctions on the tech giant in 2019, pushing it to the sidelines.
However, fueled by the success of its Mate 60 Pro 5G smartphone, Huawei is once again at the forefront, adding pressure to competitors like Apple and major domestic brands (via the South China Morning Post).
This photo taken on October 18, 2023 shows Huawei Mate 60 series smartphones displayed at a store in Shenzhen, in China's souther Guangdong province. Chinese telecoms giant Huawei on October 27 announced moderate sales growth for the first nine months of 2023, building on a recovery after its business was hit hard by US sanctions and the pandemic. (Photo by Rebecca BAILEY / AFP)
Mate 60 Pro 5G Sparks Huawei's Comeback
Huawei's triumphant return to the number one spot in China's smartphone market is attributed to the unexpected success of its Mate 60 Pro 5G, released in August.
The Mate 60 Pro's surprise presales launch last year, priced at 6,999 yuan (US$962), demonstrates Huawei's confidence in the product's appeal and technological prowess.
This flagship device, powered by the locally developed Kirin 9000S processor and featuring the HarmonyOS mobile platform, played a pivotal role in revitalizing Huawei's handset business despite US trade sanctions.
Chinese consumers' loyalty to the brand, coupled with the advanced features of the 5G handsets, contributed significantly to Huawei's resurgence.
Huawei Holds Ground Amid Heating Competiton
Despite facing cutthroat competition from Apple, Xiaomi, Oppo, and Vivo, a recent Counterpoint report indicates Huawei's resilience. The report underscores the fierce competition in the high-end smartphone segment, with domestic demand for Huawei's 5G models reflecting an increased appetite for handset upgrades.
SCMP tells us that the overall smartphone industry in China showed signs of recovery in 2023, with a 6.5% year-on-year shipment growth, reaching 289 million units. Domestic brands, including Huawei, accounted for around 80% of total shipments.
Apple, though still leading the vendor ranking, reported a nearly 13% drop in revenue from Greater China in the December quarter. Weekly iPhone shipments in China declined by 30 to 40%, signaling a challenging market for the tech giant.
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Global Premium Smartphone Market Shifts
While Apple remains the undisputed leader in the global premium smartphone market, its share decreased from 75% in 2022 to 71% last year.
The resurgence of Huawei in China and the gains made by Samsung contributed to this shift, indicating a more competitive landscape in the premium segment.
In response to market challenges, Apple offered discounts of up to 800 yuan (US$113) on various products, including iPhones and MacBooks, ahead of the Lunar New Year.
However, Huawei opted not to pursue a similar strategy due to supply shortages of its Mate 60 Pro. This strategic silence might reflect Huawei's confidence in the organic demand for its products.
Huawei's Innovation Recognized
While dominating smartphone headlines, Huawei's innovative approach extends beyond handsets. The Ministry of Industry and Information Technology praised Huawei's mobile "Cloud Phone" at the 2023 ICT Excellent Cases event (via GizChina).
This smartphone, running on cloud services, allows users to access data and apps from anywhere, emphasizing security, longer battery life, and enhanced computing power.
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