Huawei Technologies returned to the top spot of China’s smartphone shipments in the second quarter of the year, while Apple returned to growth but continued to trail domestic rivals, according to new Canalys figures.

Meanwhile, Apple said without explanation that it would close a retail store in the northeastern city of Dalian, its first shutdown of a directly operated outlet on the Chinese mainland.

Huawei shipped 12.2 million smartphones in mainland China in the three months ending in June, up 15 percent year-on-year, to reach 18 percent market share, Canalys said.

Competitive market

It is the first time Huawei has been the biggest smartphone seller in China since the first quarter of 2024, Canalys said.

Meanwhile, Apple shipped 10.1 million iPhones for the quarter, up 4 percent year-on-year and ranking fifth at about 15 percent market share.

The quarter was the first time Apple has shown growth in China since the fourth quarter of 2023, according to Canalys.

Counterpoint reported similar findings earlier this month.

China is a critical market for Apple, but it has faced intense domestic competition and has been hampered by ongoing delays to the rollout of iPhone AI features.

Vivo, which led the market in the second quarter of 2024, fell to second place with 11.8 million units at 17 percent market share.

Oppo, based in Shenzhen, took third place with 10.7 million units and 16 percent share, followed in fourth place by Beijing-based Xiaomi with 10.4 million units at 15 percent share.

Canalys noted that the quarter showed a correction due to reshaped seasonality driven by China’s national subsidy programme in the early part of this year.

“Despite the slowdown, underlying consumer demand remained resilient, with first-half shipments slightly increasing year on year,” said practice leader Amber Liu.

Apple’s growth was aided after the company “strategically adjusted its pricing” for the iPhone 16 series in China, Canalys said.

Store closure

Huawei has aggressively rolled out new models, including foldable variants, and has been rolling out HarmonyOS 5, which runs only native apps and removes Android support, Canalys noted.

“This move is expected to accelerate the expansion of its independent ecosystem’s user base, while also placing greater demands on system compatibility and user experience,” said analyst Lucas Zhong.

Apple said on its website that its store in Dalian’s landmark Parkland shopping centre would cease operations as of 9 August, leaving the city of 7.5 million people with only one Apple outlet.

The closure follows the shopping centre’s rebranding to Intime City following a change of management, local media reports said.

Apple is planning to open a third store in Shenzhen on 16 August.