IDC stated that Huawei and Apple further lead the Chinese smartphone market, with rising chip prices exacerbating the Matthew effect
IDC data shows that Huawei and Apple further expanded their leading positions in the Chinese smartphone market in the quarter ending in June. Affected by the rise in storage chip prices, Android manufacturers raised prices, leading to a decline in shipments, while consumers shifted to high-end models or postponed upgrades, driving Huawei and Apple's shipments to grow by about 20% year-on-year, exacerbating the market Matthew effect
According to data from the international market research firm IDC, Huawei Technologies Co., Ltd. and Apple Inc. further expanded their leading positions in the Chinese smartphone market in the quarter ending in June. Faced with rising price pressures, consumers either chose to purchase high-end models or simply postponed upgrading their devices, which drove the shipment growth for both companies.
The latest data from the agency shows that a tight supply of memory chips has forced Android phone manufacturers to raise prices, impacting shipments and further exacerbating market differentiation. Although the overall smartphone market in China declined by 4.3% year-on-year in the second quarter, shipments from Shenzhen-based Huawei and Apple's iPhone product line both grew by about 20% compared to the same period last year. Huawei and Apple dominate the high-end smartphone market in China and are the only two major manufacturers among the leading companies to achieve growth.
A similar trend is observed in the global market. Amid a 6.7% overall decline in global smartphone shipments, Samsung Electronics and Apple have become the few large manufacturers to achieve growth. As costs continue to rise, more consumers are choosing to purchase high-end devices in advance to avoid the risk of further price increases in the future. Meanwhile, manufacturers focusing on the mid-to-low-end market are facing increasing operational pressure.
"The cost of memory chips has risen nearly 300% compared to a year ago, and now accounts for over 65% of the material costs in low-end phones, which is increasing the survival pressure on related manufacturers," said IDC analyst Nabila Popal. "But Apple always manages to surprise. In a shrinking overall market, achieving double-digit growth both in China and globally fully reflects the strength of the Apple brand and the advantages of its supply chain execution. Concerns about further price increases in the future may also have stimulated demand in advance."
