Q2: Xiaomi takes bite out of Apple's market share in China
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Apple lost some of its ground in China in the second quarter of 2017 slipping to the fifth place in terms of market share, according to two industry reports whose findings highlight the increasing competition the Cupertino-based tech company is facing in the world's biggest smartphone market.
Apple's share in the Chinese market stood at 8.2 percent between April and June 2017, compared to 8.5 percent registered over the same period last year, research firm Counterpoint said.
The iPhone maker was knocked off its previous fourth spot by local brand Xiaomi, which shipped a little less than 15 million smartphones in China – up more than 60 percent in sequential growth, according to tech market analyst firm Canalys.
Xiaomi's shipments in Q2 accounted for 13 percent of the total smartphones shipped in China, after a slump in the previous quarter which saw volumes dipping to 2013 levels.
Percentage of smartphone shipment share in Q2 2017 in China. (Source: Counterpoint)

Percentage of smartphone shipment share in Q2 2017 in China. (Source: Counterpoint)

Commenting on Xiaomi's strong comeback, Canalys Research Analyst Lucio Chen said, “Xiaomi still offers the best value in the Chinese market, and it remains the preferred choice for price-conscious consumers. The online channel continues to be a key route to market for Xiaomi and this quarter saw it take the lead in the 618 (June 18) online sales events across online retail platforms, such as JD.com and Tmall.”
Huawei maintained its market lead for the second quarter in a row, thanks to the success of its devices, of which it shipped over 23 million units.
"Huawei’s Nova phone along with the flagship P10 were in strong demand during the quarter," Associate Director Tarun Pathak at Counterpoint noted.
It was followed by Oppo and Vivo, whose shipments accounted for 18.8 percent and 17 percent respectively of the Chinese market share.
Sales of Oppo devices grew by 37 percent on an annual basis in the period stretching from April to June, Canalys said, with shipments exceeding 21 million devices.
A new Apple Store in Williamsburg in New York on July 28, 2016. /Reuters Photo

A new Apple Store in Williamsburg in New York on July 28, 2016. /Reuters Photo

The top 4 Chinese brands control around 69 percent of China's smartphone market, but plenty is at stake for Apple.
"The top five brands accounted for almost three quarters of the shipments, with the top four all growing and adding 10 percent to their cumulative share compared with the same quarter a year ago," said Hattie He, another researcher with Singapore-based Canalys.
This year has been tough for Apple in China as the road to customer's hearts, hands and wallets was upset by speed bumps. 
In January, a report by Counterpoint showed that the iPhone ceased to be the top-selling smartphone in China – a position it had held for five years – in 2016 after its sales were outperformed by that of Oppo R9. Apple's revenue in Greater China has plunged for five consecutive quarters with the company posting a 14.1-percent drop in sales in its most recent earnings report.
In a sign Apple is attempting to inject impetus into its lackluster performance in the region, the company created earlier this month a new post, managing director for Greater China, and chose Isabel Ge Mahe, who has been a cornerstone in rolling out China-specific features for the latest iOS version, to fill the position.
Apple's weak performance was labelled as "seasonal" by Counterpoint, with experts pinning hopes on the release of the iPhone 8 to turn the tides.