Thanks to iPhone, history was made in the world's largest smartphone market during Q2
![Thanks to iPhone, history was made in the world's largest smartphone market during Q2](https://m-cdn.phonearena.com/images/article/160834-wide-two_350/Thanks-to-iPhone-history-was-made-in-the-worlds-largest-smartphone-market-during-Q2.jpg?1722051160)
Just about a month ago we told you that the iPhone was staging a recovery in China. In April and May, year-over-year iPhone shipments rose 52% and 40% respectively. Apple had run into some issues in the world's largest smartphone market last year starting with the shocking release of Huawei's Mate 60 line in August. Powered by a Huawei-designed 5G Kirin chip for the first time since 2020's Mate 40 line, Huawei's ability to workaround U.S. sanctions to obtain a 5G SoC electrified the country.
Last year, China also banned the use of the iPhone in government offices and wanted those phones replaced by handsets designed and manufactured inside China. But as we noted, Apple recovered and the iPhone was becoming hot again in China. But this roller coaster ride for the iPhone is now dropping again as Canalys reports that the iPhone dropped out of the top five in the country for the first time in years.
![For the first time in history, the top five smartphone manufacturers in China during a quarter were all domestic firms. | Image credit-Canalys - Thanks to iPhone, history was made in the world's largest smartphone market during Q2](https://m-cdn.phonearena.com/images/articles/417918-image/chinatop5Q2.jpg)
For the first time in history, the top five smartphone manufacturers in China during a quarter were all domestic firms. | Image credit-Canalys
With Apple dropping to sixth place, the second quarter of 2024 was the first quarter in history that domestic manufacturers monopolized the top five positions in the charts. The decline in the iPhone's competitive position in China is considered to be a big reason why Apple is working hard to have a clamshell foldable iPhone ready by 2026.
The top smartphone manufacturer in China during the second quarter was Vivo. One of the Chinese smartphone brands owned by BBK Electronics, Vivo shipped 13.1 million handsets during Q2 giving the company 19% of China's market during the three months ended in June. That worked out to a 15% year-over-year increase in shipments for the company. BBK's stablemate Oppo was next after 11.3 million units were delivered during the quarter, down 1% on an annual basis. Oppo had 16% of China's smartphone market during Q2.
"The growth in the second quarter signals a gradual market normalization, but we still expect a modest single-digit recovery for the year. Three key trends will impact the market landscape in the second half of 2024. Firstly, the market will be closely watching Huawei's upcoming launch of HarmonyOS Next, as the vendor aims to position it as a third major mobile OS alongside Android and iOS. Additionally, local players are investing in AI infrastructure, developing in-house models, and creating AI applications as key competitive advantages to disrupt the high-end segment. Lastly, the intense domestic competition is also driving overseas expansion, with Chinese brands expected to achieve new milestones in international markets throughout the rest of 2024."-Toby Zhu, Canalys Senior Analyst
With 10.7 million phones delivered in China during Q2, former Huawei sub-unit Honor just edged out its former corporate parent for third place. That worked out to a 4% year-over-year increase giving Honor a 15% slice of the Chinese smartphone pie. Not surprisingly, Huawei had the largest annual increase in shipments in China during the second quarter as the release of its Pura 70 flagship line helped drive shipments 41% higher than last year's second quarter. Huawei shipped 10.6 million phones, good enough for fourth place and a 15% market share in its home country.
Rounding out the iPhone-less top five was Xiaomi with 10 million handsets delivered in China during the quarter. That was a 17% increase on an annual basis giving Xiaomi a 14% share of the Chinese smartphone market during the second quarter.
Second-quarter smartphone shipments in China reached 70.5 million units, a 10% gain from the 64.3 million delivered during the same quarter last year.
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