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
110 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)
Luke MacWalker Avatar
110 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
110 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)
tmartine Avatar
110 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)
Sasparilla Avatar
110 months ago
In a country where the average wage is a pittance of what it is in the Western World, that vendors with much cheaper handsets (and links with the country's authoritarian government) are grabbing market-share as more and more of the population buys mobile handsets is not a surprise. JMHO...
Score: 3 Votes (Like | Disagree)
TallManNY Avatar
110 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)

Popular Stories

iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro Coming Soon With These 14 New Features

Friday July 4, 2025 1:05 pm PDT by
Apple's next-generation iPhone 17 Pro and iPhone 17 Pro Max are just over two months away, and there are plenty of rumors about the devices. Below, we recap key changes rumored for the iPhone 17 Pro models. Latest Rumors These rumors surfaced in June and July:Apple logo repositioned: Apple's logo may have a lower position on the back of the iPhone 17 Pro models, compared to previous...
iphone 16 pro models 1

Here's How the iPhone 17 Pro Max Will Compare to the iPhone 17 Pro

Saturday July 5, 2025 1:00 pm PDT by
Apple should unveil the iPhone 17 series in September, and there might be one bigger difference between the Pro and Pro Max models this year. As always, the Pro Max model will be larger than the Pro model:iPhone 17 Pro: 6.3-inch display iPhone 17 Pro Max: 6.9-inch displayGiven the Pro Max is physically larger than the Pro, it has more internal space, allowing for a larger battery and...
airpods pro 2

AirPods Pro 3 to Help Maintain Apple's Place in Earbud Market Amid Increasing Low-Cost Competition

Thursday July 3, 2025 7:25 am PDT by
Apple's position as the dominant force in the global true wireless stereo (TWS) earbud market is expected to continue through 2025, according to Counterpoint Research. The forecast outlines a 3% year-over-year increase in global TWS unit shipments for 2025, signaling a transition from rapid growth to a more mature phase for the category. While Apple is set to remain the leading brand by...
iPhone 17 Pro in Hand Feature Lowgo

iPhone 17 Pro Max Battery Capacity Leaked

Thursday July 3, 2025 5:40 am PDT by
The iPhone 17 Pro Max will feature the biggest ever battery in an iPhone, according to the Weibo leaker known as "Instant Digital." In a new post, the leaker listed the battery capacities of the iPhone 11 Pro Max through to the iPhone 16 Pro Max, and added that the iPhone 17 Pro Max will feature a battery capacity of 5,000mAh: iPhone 11 Pro Max: 3,969mAh iPhone 12 Pro Max: 3,687mAh...
Apple Watch Ultra Night Mode Screen

Apple Watch Ultra 3 Launching Later This Year With Two Key Upgrades

Wednesday July 2, 2025 1:13 pm PDT by
The long wait for an Apple Watch Ultra 3 appears to be nearly over, and it is rumored to feature both satellite connectivity and 5G support. Apple Watch Ultra's existing Night Mode In his latest Power On newsletter, Bloomberg's Mark Gurman said that the Apple Watch Ultra 3 is on track to launch this year with "significant" new features, including satellite connectivity, which would let you...
apple silicon mac lineup 2024 feature purple m5

Apple's Upcoming Macs Listed in New Report

Thursday July 3, 2025 9:09 am PDT by
AppleInsider's Marko Zivkovic today shared a list of alleged identifiers for future Mac models, which should roll out over the next year or so. The report does not reveal anything too surprising, but it does serve as further evidence that Apple is seemingly working on new models of every Mac, including the MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, and Mac Pro. Apple is...
Future M5 Chip Devices

M5 Chip Rumored to Debut in These Five Apple Products Later This Year

Friday July 4, 2025 9:14 am PDT by
Apple's next-generation M5 chip is expected to debut in five new products later this year, including the iPad Pro, Vision Pro, MacBook Pro, Mac mini, and iMac. M5 chips will reportedly be manufactured with TSMC's latest third-generation 3nm process, which should result in slight performance and power efficiency improvements over M4 chips fabricated with its second-generation 3nm process. ...