Apple (NASDAQ:AAPL) slipped to fifth as China smartphone shipments dropped 4% in Q2.
China’s smartphone market shipped 69 million units in Q2, down 4% year over year after six consecutive quarters of growth, according to preliminary IDC data.
Apple shipped 9.6 million iPhones, down 1.3% year over year, holding a 13.9% market share compared with 13.5% a year ago. Although Apple outperformed the broader 4% decline, its ranking fell behind local rivals.
Huawei reclaimed the top position with 12.5 million units shipped despite a 3.4% drop, while Xiaomi was the only top?five brand to grow, with shipments rising 3.4%. IDC analysts said limited government subsidies and cautious inventory management during the 618 shopping festival drove the slowdown in volumes.
Why it matters: Intensifying domestic competition and policy headwinds may pressure Apple’s growth in its second?largest market.
Investors will watch IDC’s next China shipment report in October for signs of stabilization.
This article first appeared on GuruFocus.
