iPhone shipments grew “significantly” by 36% in China in the third quarter

A new market intelligence report says iPhone shipments grew 36% year-on-year in China in the third quarter, while all other major brands saw their sales fall between 16% and 27%.

Data shows that this increased Apple’s share of the smartphone market in the country from 11% to 16%, but the news for the iPhone maker was not all good…

iPhone shipments in China

Canalys said the overall smartphone market in China was down 11% year over year.

Canalys’ latest smartphone estimates show that the mainland China smartphone market for the third quarter of 2022 improved slightly during the second quarter with 70 million units shipped. However, the market is still struggling and is down 11% year over year as freight levels continue to decline.

The headline news for Apple was excellent, boosting shipments by more than a third, and overtaking Xiaomi to take fourth place.

“Apple saw significant growth in mainland China in the third quarter,” said Canalys analyst Amber Liu. “Its annual launch is highly anticipated by consumers and channels, and strong demand for the iPhone 14 Pro series has contributed to Apple’s overall performance.”

As is the case worldwide, there has been less than expected demand for the two base models, but this is also good news for Apple, as it has increased the average selling price (ASP) for sales of the new lineup.

But not all news was good

The report goes on to say that Apple’s success depended more than usual on sales of the previous generation of iPhones. Sales of these cheaper devices were also boosted by “heavy” discounts, a relatively new behavior for the Cupertino company.

With the onslaught of competition from Android vendors, Apple had to give up adopting aggressive promotions for its entry-level versions and previous generation devices, especially in the RMB5000-6000 price range (US$700-800).

Historically, Apple has always sold iPhones from its physical stores and online at the official price. He. She she has It offered wholesalers additional discounts to enable them to offer phones at discounted prices, but the company never offered direct discounts to consumers.

That changed again in July, when Apple started offering discounts on the official Apple online store.

Several products have started to be discounted on Apple’s official website in China. It appears that this is the first time that Apple has offered a direct discount on the official website. The campaign is limited to 4 days, and you can get a discount of up to 600 yuan (about $89).

The iPhone 13 series, iPhone SE (3rd generation), iPhone 12/12 mini, Apple Watch SE, AirPods Pro, and AirPods (3rd generation).

Apple likely to dominate the holiday season

Looking into the holiday season, Canalys says things won’t get much better for most brands, while Apple will enjoy mass-market sales of the iPhone 14 lineup.

While demand is strong, Apple is still at risk of supply restrictions. In particular, China’s COVID-19-free policy, which has resulted in entire cities shutting down after a few positive tests. Apple assembler Foxconn yesterday confirmed the outbreak inside its main factory in “iPhone City”, but said the impact on iPhone production was “controllable”.

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