Apple and iPhone 7 Continue to Be Outpaced by Lower-Cost Smartphone Brands in China - MacRumorsOpen MenuShow RoundupsShow Forums menuVisit ForumsOpen Sidebar
Skip to Content

Apple and iPhone 7 Continue to Be Outpaced by Lower-Cost Smartphone Brands in China

by

Apple remained the fourth largest smartphone vendor in China in 2016, beaten out by Oppo, Huawei, and Vivo in first, second, and third places, respectively, according to new data from research firm IDC. As a whole, IDC said it was a good year for the smartphone market in China, which saw a 19 percent year-over-year growth in 2016, and a 17 percent quarter-over-quarter growth in the fourth quarter of the year.

Unfortunately for Apple, 2016 also represented its first ever year-over-year decline in the Chinese smartphone market. IDC noted that the new iPhone 7 debut "did not create as much of a frenzy compared to the past" launch of other iPhone models, but the firm doesn't think that vendors like Oppo, Huawi, and Vivo are stealing Apple's market share away. IDC believes that most of Apple's loyal Chinese users simply took an off year in 2016 in anticipation of 2017's "iPhone 8."

iphone 7 plus colors

2016 was the first time ever that Apple saw a YoY decline in the PRC market. Even though the new black colored iPhones caught the attention of consumers, overall, the new launches did not create as much of a frenzy compared to the past.

Despite the decline, IDC does not believe Chinese vendors have actually eaten away Apple's market share. Most Apple users are expected to be holding out for the new iPhone that will be launched this year, and that will help the brand to see a growth in 2017. Apple's 10-year anniversary iPhone will also likely attract some of the high-end Android users in China to convert to an iPhone.

The overall growth in the smartphone market in China is said to be fueled by an "increased dependence on mobile apps" that led to consumers seeking device upgrades. Even in lower tiered cities, users sought out upgrades, which Apple's iPhone was too high-priced to justify. Instead, Oppo and Vivo "aggressively pushed mid-range smartphones in these cities," according to Tay X iaohan, IDC senior market analyst.

IDC china smartphone 1
The last note in the research firm's report focused on the slowdown of online shopping in 2016, with companies shifting to bolster their brick-and-mortar retail presence in China. This includes Xiaomi -- ranking as the fifth largest smartphone vendor -- which opened new Mi Home stores throughout the year to drive retail growth. "Apple has also been aggressive in increasing its offline retail presence," according to IDC. Just last month Apple launched its seventh retail location within Shanghai, China.

IDC china smartphone
One of Apple's biggest achievements in China is the App Store. In the third quarter of 2016, the country became the number one largest market in the world for App Store revenue on iOS devices, according to App Annie. Otherwise, Apple has been slowly losing market share in China for a while, with Europe last summer regaining its position as Apple's second biggest market after the United States and ahead of China.

Tag: China
Related Forum: iPhone

Top Rated Comments

Kaibelf Avatar
127 months ago
In other news, more people buy McDonalds burgers than buy steak dinners. That doesn't mean they can't coexist.
Score: 7 Votes (Like | Disagree)
127 months ago
And Samsung disappeared from the top 5 in China. Who could have told this based on the declarations of the "analysts" one or two years ago ? ;)
Score: 5 Votes (Like | Disagree)
nocturnum Avatar
127 months ago
I never understood how a phone that is expensive to most of us in the west is affordable in countries like China or India.

Considering what the annual wage is in India how can an iPhone of any description be affordable?
China has roughly 1.400.000.000 people. If 5% has decent wages, this means 70.000.000 potential customers. Get it?
Score: 4 Votes (Like | Disagree)
TallManNY Avatar
127 months ago
China has roughly 1.400.000.000 people. If 5% has decent wages, this means 70.000.000 potential customers. Get it?
And even if that 5% doesn't at first blush seem to make that much each year, the cost of living is much lower. You can make $100,000 a year in China and that means you can have a full-time maid/cook. When food and other daily expenses are really cheap, you can splurge on stuff like an iPhone if you want.
Score: 3 Votes (Like | Disagree)
tmartine Avatar
127 months ago
And Samsung disappeared from the top 5 in China. Who could have told this based on the declarations of the "analysts" one or two years ago ? ;)
Seriously... Chinese are eating Samsungs lunch on the low end and Apple is kicking their butt in the high end... doesn't look good for them or other Japanese and Korean manufacturers...
Score: 3 Votes (Like | Disagree)
Fzang Avatar
127 months ago
For all those about to make sweeping generalizations of ~half the world's population, remember that a small-percentage middle-class-and-above is still millions and millions of people who can easily afford an iPhone, just like you and I.
Score: 3 Votes (Like | Disagree)

Popular Stories

iOS 27

Apple Says iOS 27.3 Beta Coming Next Week

Friday October 30, 2026 2:45 pm PDT by
Apple today announced that the first iOS 27.3 developer beta will be released next week and enable some Apple Intelligence features in China. In a press release shared on the Apple Newsroom website in China, Apple said the beta will be released on Wednesday, November 4, but that likely means Tuesday, November 3 in the U.S. due to time zone differences. Apple said iOS 27.3 will then be...
apple intelligence black

Apple Intelligence Coming to China in December With iOS 27.3

Wednesday October 14, 2026 1:24 pm PDT by
Apple plans to bring Apple Intelligence to China in iOS 27.3 after two years of regulatory delays, reports Bloomberg. The launch will include basic Apple Intelligence features for things like photo editing, but Siri AI won't be available. Image Playground and the newer version of Genmoji will be missing, plus text generation tools will be limited. The South China Morning Post today reported...
iPhone 18 Pro Pre Orders Feature Sans Text

iPhone 18 Pro Sales Surge in China, Offsetting Decline in U.S. and Japan

Friday October 30, 2026 10:55 pm PDT by
China is doing much of the heavy lifting for Apple's iPhone 18 Pro launch, with a 29% sales increase helping offset declines in the U.S. and Japan, according to Counterpoint Research. Combined global sales of the iPhone 18 Pro and iPhone 18 Pro Max rose 3.1% during their first three weeks of availability compared with the equivalent launch period last year. U.S. sales fell 4%, while Japan...
Latest Stories
Apple Watch Ultra 4 Hits All-Time Low Price With Amazon's $99 Discount
Apple Watch Ultra 4 Hits All-Time Low Price With Amazon's $99 Discount
15 hours ago
Reminder: Apple's Big Discount on Beats 360 Ear Cushions Ends Today
Reminder: Apple's Big Discount on Beats 360 Ear Cushions Ends Today
15 hours ago
Here's a New Tour of Apple's HomeView Software
Here's a New Tour of Apple's HomeView Software
15 hours ago
Apple Reveals New iPad Mini's Battery Capacity
Apple Reveals New iPad Mini's Battery Capacity
17 hours ago
Top Stories: Apple's Big MacBook Pro, iPad mini and iMac Updates
Top Stories: Apple's Big MacBook Pro, iPad mini and iMac Updates
18 hours ago
'Pluribus' Season 2 Reportedly Starts Production Today
'Pluribus' Season 2 Reportedly Starts Production Today
1 day ago
iPhone 18 Pro Sales Surge in China, Offsetting Decline in U.S. and Japan
iPhone 18 Pro Sales Surge in China, Offsetting Decline in U.S. and Japan
1 day ago
HomeView Software 27.2: Wallpapers, Control Center, and More
HomeView Software 27.2: Wallpapers, Control Center, and More
1 day ago
Apple Alerts Stores to iPhone Duo's Display Cracking Issue
Apple Alerts Stores to iPhone Duo's Display Cracking Issue
1 day ago
iOS 27.3 Will Enable These Apple Intelligence Features in China
iOS 27.3 Will Enable These Apple Intelligence Features in China
1 day ago
Apple Says iOS 27.3 Beta Coming Next Week
Apple Says iOS 27.3 Beta Coming Next Week
1 day ago
Apple's Flash Storage Suppliers Are Finally 'Getting Their Revenge'
Apple's Flash Storage Suppliers Are Finally 'Getting Their Revenge'
1 day ago
14 New Things Your iPhone Can Do in iOS 27.2
14 New Things Your iPhone Can Do in iOS 27.2
2 days ago
iPhone Duo Review: One Week Later
iPhone Duo Review: One Week Later
2 days ago
Samsung Mocks iPhone Duo Display Cracks in New Ad Campaign
Samsung Mocks iPhone Duo Display Cracks in New Ad Campaign
2 days ago
The MacRumors Show: OLED MacBook Pro, iPad Mini 8, and More
The MacRumors Show: OLED MacBook Pro, iPad Mini 8, and More
2 days ago
MacBook Pro With Touch Display: 15 More Details Revealed
MacBook Pro With Touch Display: 15 More Details Revealed
2 days ago
Russia Places Apple on State Surveillance Registry
Russia Places Apple on State Surveillance Registry
2 days ago
Halloween Weekend Brings Discounts on Apple Accessories and Pre-Orders
Halloween Weekend Brings Discounts on Apple Accessories and Pre-Orders
2 days ago
Apple Has Released More Than 25 New Products in the Past Two Months
Apple Has Released More Than 25 New Products in the Past Two Months
2 days ago
Local Code Launches as Free, Private AI Assistant Tool for Mac
Local Code Launches as Free, Private AI Assistant Tool for Mac
2 days ago
Apple Acquires Ascend.io
Apple Acquires Ascend.io
2 days ago
HomePod Mini 2 Launches Today: All the New Features
HomePod Mini 2 Launches Today: All the New Features
2 days ago
AirTag 2 4-Pack Drops to New Low Price of $69.99
AirTag 2 4-Pack Drops to New Low Price of $69.99
2 days ago
Rian Johnson's iPhone Camera App Goes Viral
Rian Johnson's iPhone Camera App Goes Viral
2 days ago
Where Did All the iPhone Duos Go? Mostly to Apple's Stores
Where Did All the iPhone Duos Go? Mostly to Apple's Stores
2 days ago
Apple's Touchscreen MacBook Pro Could Ship 1.5M Units in 2027
Apple's Touchscreen MacBook Pro Could Ship 1.5M Units in 2027
2 days ago
New Apple TV 4K and iPad Mini: RAM Amounts Revealed
New Apple TV 4K and iPad Mini: RAM Amounts Revealed
2 days ago
Apple Executive Comments on New iPad Mini Lacking 120Hz Display
Apple Executive Comments on New iPad Mini Lacking 120Hz Display
2 days ago
Here's a Hands-On Look at HomePod Mini 2's New Two-Tone Colors
Here's a Hands-On Look at HomePod Mini 2's New Two-Tone Colors
2 days ago

🔗 Related Apple News & Rumors

Stay updated with the latest Apple ecosystem news and verified rumors