Apple Surpasses Huawei in China’s Smartphone Market Despite Government Bans

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Apple Inc (AAPL) has secured the top spot in China’s smartphone market, outperforming local competitors, and overcoming government restrictions.

For the first time, Apple’s iPhone series claimed the lead in China’s smartphone market in 2023, as per a report from Bloomberg. This achievement is particularly remarkable given the strained relations between the U.S. and China, resulting in bans on Apple products within the country.

Despite these challenges, the iPhone recorded the highest shipments in the fourth quarter of 2023, according to data from market tracker IDC. The success can be attributed to strategic discounts and promotions that enabled Apple to stand firm against domestic rivals, including Huawei Technologies Co.

The significance of Apple’s recent triumph in China’s smartphone market cannot be understated, especially considering the country’s emphasis on technological self-reliance. In December, the Chinese government and state-backed entities actively promoted the use of domestic technologies, including smartphones, over foreign-made devices.

This shift was reinforced by the expanded ban on Apple devices, encompassing additional state firms and government departments across multiple Chinese provinces. This move, reported in December, raised concerns about a potential decline in Apple’s sales in China.

However, despite these challenges, the iPhone series not only maintained its position but also surpassed the market. The success can be attributed to Apple’s strategic pricing and promotional efforts, exemplified by recent discounts of up to $70 on its latest iPhone models in China.