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Apple and Foxconn Admit Hiring Too Many Temporary Workers in China to Assemble iPhones, Potentially Violating Labor Laws

Apple and manufacturing partner Foxconn have admitted to recruiting too many temporary staff in one of the world's biggest iPhone factories, following a report from a non-profit advocacy group alleging harsh working conditions (via Bloomberg). China Labor Watch (CLW), which investigates conditions in the country's factories, published its report on Sunday accusing the two companies of breaching several Chinese labor laws, including one barring temporary staff from exceeding 10 percent of the total workforce. CLW said undercover investigators worked in Foxconn's Zhengzhou plant in China and found that temporary staff, known as "dispatch workers," made up about 50 percent of the workforce in August, when the supply chain is usually ramped up ahead of new iPhone releases. Chinese labor law allows a maximum of 10 percent. Our recent findings on working conditions at Zhengzhou Foxconn highlights several issues which are in violation of Apple’s own code of conduct. Apple has the responsibility and capacity to make fundamental improvements to the working conditions along its supply chain, however, Apple is now transferring costs from the trade war through their suppliers to workers and profiting from the exploitation of Chinese workers.In a statement, Apple said it investigated the percentage of temporary workers among the overall workforce and found it "exceeded our standards," and said it was working with Foxconn to "immediately resolve the issue." In addition, Apple said it had found that interns at a supplier facility worked overtime at night, something which

China Reportedly Used iPhone Exploits to Target Uyghur Muslims

Last week we reported on Google's discovery of an old iPhone vulnerability – now fixed by Apple – that enabled malicious websites to steal data from thousands of users over a two-year period. Google described these attacks in its original blog post as "indiscriminate," however a report over the weekend by TechCrunch suggests the websites were part of a state-backed attack that specifically targeted Uyghur Muslims. The websites were part of a campaign to target the religious group by infecting an iPhone with malicious code simply by visiting a booby-trapped web page. In gaining unfettered access to the iPhone's software, an attacker could read a victim's messages, passwords, and track their location in near-real time.According to TechCrunch's sources, the Chinese government was allegedly behind the malicious websites, which also infected non-Uygurs who unintentionally accessed these domains because they were indexed in Google search. The FBI is said to have alerted Google to ask for the sites to be removed from its index to prevent infections. Beijing has long sought to suppress the ethnic minority Uyghur community in the country's Xinjiang state, with brutal crackdowns in the 1980s and 90s leading to significant numbers of Uyghurs fleeing China to seek asylum. In the past year, at least one million Uighurs have been detained in internment camps, according to the United Nations human rights committee. Beijing claims the centers across Xinjiang are for "vocational training," but a US Congressional hearing on the camps characterized them as "political

Trump Says Tim Cook Made 'Good Case' That Tariffs Would Put Apple at Disadvantage With Rivals Like Samsung

Apple CEO Tim Cook and U.S. President Donald Trump met for dinner on Friday evening, and Trump has since told reporters that the two discussed the impact of U.S. tariffs on Apple products imported from China. Melania Trump, Donald Trump, and Tim Cook in August 2018 Trump said Cook "made a good case" that tariffs could put Apple at a disadvantage given that rival Samsung's products would be less impacted by the tariffs, according to Reuters. "I thought he made a very compelling argument, so I'm thinking about it," Trump said, speaking at an airport in Morristown, New Jersey. The U.S. plans to impose an additional 10 percent tariff on approximately $300 billion of Chinese imports on September 1, but last week it delayed the tariff to December 15 for products including the iPhone, iPad, and MacBooks. Other products like the Apple Watch, AirPods, and HomePod are still set to be impacted September 1. In a letter to the Trump administration in June, Apple urged against the tariffs, claiming that they would reduce the company's contribution to the U.S. economy and weigh on its global competitiveness. Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Apple's Stock Surges After U.S. Delays Additional 10% Import Tariff on Products Like Cell Phones and Laptops

Apple's stock has surged around five percent after the United States Trade Representative announced that an additional tariff of 10 percent on approximately $300 billion of Chinese imports will be delayed to December 15 for products such as cell phones, laptop computers, and monitors, per CNBC. Moreover, the USTR said certain products are being removed from the tariff list based on "health, safety, national security and other factors" and will not be subject to the additional tariff of 10 percent whatsoever. It is unclear if this decision applies to any Apple products or accessories. BREAKING: Stocks jump to session highs, Apple surges more than 4.5% after USTR removes items from China tariff list, delays some others including those on cell phones and laptops https://t.co/4gGcxyFOnV pic.twitter.com/AMmid6LZJY— CNBC Now (@CNBCnow) August 13, 2019 The USTR said it will provide additional details and lists of the tariff lines affected by this announcement on its website today. The new tariff kicks in September 1 for the remaining Chinese imports impacted. Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Tim Cook: Apple Saw 'Great Improvement' in China in Q3 2019

Thanks to trade-in programs and other promotions, Apple saw significant improvement in iPhone sales in China, Apple CEO Tim Cook said today during today's earnings call covering the third fiscal quarter of 2019. Cook said that Apple saw "great improvement" in China, returning to growth in constant currency in Greater China with improvements in year-over-year iPhone performance compared to the last two quarters. We're happy with our performance across the board, including a return to growth in mainland China. We accomplished this despite strong headwinds from foreign exchange, which impacted the top-line growth rate by 300 points compared to a year ago, equivalent to $1.5 billion of revenue. In constant currency, our revenue grew in all five of our geographic segments.Cook went on to say that Apple is "encouraged" by the results of the initiatives it launched earlier this year, with the company seeing a strong customer response to in-store trade-in and financing programs. iPhone in retail and online stores returned to growth on a year-over-year basis in June, said Cook, and the active installed base of iPhone users reached a new all-time high. Despite the improvements, iPhone revenue was down during the quarter. The iPhone brought in $26 billion, down from $29.5 billion in the third quarter of 2018. For the first time, the iPhone was responsible for less than half of Apple's revenue, with services and wearables making up for the decline in sales. Cook said that later this year, Apple has "several new products" that it can't wait to share with customers, without

Apple Asks U.S. for Import Tariff Exemption on Parts for New Mac Pro After Shifting Assembly to China

Apple has asked the Trump administration to exclude components for the new Mac Pro and various accessories like the Magic Mouse and Magic Trackpad from being subject to a 25 percent tariff on Chinese imports, according to filings with the Office of the U.S. Trade Representative uncovered by Bloomberg. The administration has promised relief if companies can show that parts or products can only be obtained in China, among other factors, according to the report. In all of its exclusion requests (search for Apple), Apple indicates that "there are no other sources for this proprietary, Apple-designed component." The new Mac Pro will be assembled by contract manufacturer Quanta Computer in China, according to The Wall Street Journal. The current Mac Pro, released in 2013, has been assembled in Texas since its release and is Apple's only major hardware product manufactured in the United States. Last month, an Apple spokesperson said "final assembly is only one part of the manufacturing process," adding that the new Mac Pro is designed and engineered in the United States and includes some U.S.-made components. Trump's administration has threatened to impose another $300 billion in tariffs on Chinese imports, which would impact nearly every Apple product, but it has so far held off. In a recent letter, Apple warned that these tariffs would reduce its economic contributions and threaten its global competitiveness. Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our

Apple Opens App Design and Development Accelerator in Shanghai

Apple has announced the opening of a new Design and Development Accelerator in Shanghai as part of an effort to support engineering talent and boost growth in China's iOS developer community. Located in Pudong District, the Accelerator is being launched to give Chinese developers a chance to work closely with Apple experts to enhance their app development skills, learn how to take advantage of the latest Apple software and hardware, and get tips on app marketing and distribution. "Developers here in China are leading the world with some of the most popular apps on the App Store, and we are proud to be providing this additional support for them," said Enwei Xie, Apple’s head of developer relations, Greater China. "From education to health to entertainment, the innovation we see here is incredible and we can't wait to see what these talented developers will come up with next."The first Accelerator program focused on how to implement Apple's augmented reality technologies, with an in-depth look at the latest updates to ARKit 3, AR Quick Look, Reality Composer, and RealityKit. According to Apple, the range of activities includes lectures, workshops, labs, guest speakers, train the trainers, and networking on a regular basis. Apple says Greater China has over 2.5 million app developers, and since 2010, local developers have earned over 200 billion RMB through App Store sales, with over 30 percent of those earnings made in the past year alone. Shanghai's Accelerator follows a similar scheme Apple launched in 2017 in Bangalore, India. To attend

Apple Reportedly Plans to Launch iPhone With Under-Display Fingerprint Sensor in China

Apple intends to launch a new iPhone for the budget-conscious Chinese market that features an under-display fingerprint sensor instead of expensive Face ID technology, Chinese media sources have claimed. According to Sino-based English-language paper The Global Times, Apple will release the new "tailored iPhone" in the country to arrest declining sales, which have been worsened by cost pressures from the 18-month long trade war between the U.S and China. The new phone will reportedly remove Face ID, the facial recognition system for the iPhone, and instead employ an under-display fingerprint function, news site caijing.com.cn reported, citing sources on the upstream industry supply chain. An industry insider revealed that this is likely to "save on costs." A structured light laser emitter, the major component of Face ID, would cost several hundred yuan, said a Beijing-based representative who preferred to be anonymous. He told the Global Times on Monday that "only Apple can afford it but that would also affect its sales."Apple has effaced fingerprint recognition entirely in its flagship smartphone lineup, which includes the iPhone XS, iPhone XS Max, and LCD-based iPhone XR. All have a notch at the top of the screen housing the TrueDepth sensing camera in lieu of a Home button, which contained Touch ID's focused capacitive drive ring in earlier iPhones. Apple was widely rumored to be attempting to integrate Touch ID under the display on 2017's iPhone X, but the company ditched any form of fingerprint scanning after hitting "early

Apple's New Mac Pro Won't Be 'Made in USA' as Production Reportedly Moving to China

While the current Mac Pro has been manufactured in Texas since it was released in 2013, The Wall Street Journal reports that the new Mac Pro unveiled earlier this month will be assembled by Quanta Computer in China. Quanta is said to be ramping up production of the new Mac Pro at a factory near Shanghai, and given lower wages and closer proximity to other Apple suppliers in Asia, the Chinese manufacturing is expected to cost Apple less than it would to make the computer in the United States. The move would allow Apple to avoid many of the issues its U.S. suppliers have faced in assembling the Mac Pro stateside. The current Mac Pro is Apple's only major hardware product manufactured in the United States, with all others assembled by Chinese contractors, such as Quanta for the Apple Watch. Here's a video of how the current Mac Pro is made in the United States: In a statement, an Apple spokesperson said "final assembly is only one part of the manufacturing process," adding that the new Mac Pro is designed and engineered in the United States and includes some U.S.-made components. As a high-end, expensive workstation for professionals, the Mac Pro is not a high volume product for Apple, but where it is manufactured is notable given the ongoing trade war between the United States and China. President Donald Trump has urged U.S. companies to manufacture products domestically. Trump's administration has increased tariffs to 25 percent on $200 billion of Chinese

Apple Says Trump's Tariffs Will Reduce Its Economic Contributions and Global Competitiveness

Apple has urged the Trump administration not to proceed with tariffs of up to 25 percent on a fourth set of goods imported from China, which would impact nearly all of its products, including the iPhone, iPad, Mac, Apple Watch, Apple TV, AirPods, Beats, HomePod, batteries, repair parts, and more. In a letter sent to United States Trade Representative Robert Lighthizer [PDF] this week, Apple warned that the tariffs would reduce the company's contributions to the U.S. economy and weigh on its global competitiveness:U.S. tariffs on Apple's products would result in a reduction of Apple's U.S. economic contribution. U.S. tariffs would also weigh on Apple's global competitiveness. The Chinese producers we compete with in global markets do not have a significant presence in the U.S. market, and so would not be impacted by U.S. tariffs. Neither would our other major non-U.S. competitors. A U.S. tariff would, therefore, tilt the playing field in favor of our global competitors. We urge you not to proceed with these tariffs. Thank you for your consideration of our comments.Apple outlined many of its economic contributions in the letter, referring to itself as a "proud U.S. company" that is both the largest corporate taxpayer and one of the largest job creators in the country:Apple is a proud U.S. company and one of the largest job creators in the United States. We are responsible for over 2 million jobs across all 50 states, including Apple's direct employees, employees at our manufacturing and retail partners, and Americans who make their living in the vibrant and

Apple Reportedly Considering Moving Up to 30% of Production Out of China to Diversify Supply Chain

With the U.S.-China trade war seemingly showing no signs of slowing down, a new report claims that Apple is getting serious about diversifying its supply chain in an effort to reduce its reliance on Chinese manufacturing. iPhone disassembly robot Daisy Specifically, Apple has asked several of its major suppliers to evaluate the cost implications of shifting 15 to 30 percent of their production capacity from China to Southeast Asia countries as it prepares for a "fundamental restructuring of its supply chain," according to the Nikkei Asian Review.Key iPhone assemblers Foxconn, Pegatron, Wistron, major MacBook maker Quanta Computer, iPad maker, Compal Electronics, and AirPods makers Inventec, Luxshare-ICT and Goertek all have been asked to evaluate options outside of China, multiple sources say. Many other Apple suppliers such as print circuit board and casing providers are closely monitoring where these major assemblers would shift their production.The countries being considered for diversification include Mexico, India, Vietnam, Indonesia, and Malaysia, with India and Vietnam among the favorites for iPhone assembly, according to the report. Apple supplier Wistron already assembles a limited quantity of iPhones in India. As part of the efforts, Apple reportedly has a so-called "capital expense studies team" tasked with negotiating with suppliers and governments. While these plans are said to have been triggered by the trade war, the report claims that Apple has decided the risks of relying so heavily on manufacturing in China are "too great and even rising" even

Apple CEO Tim Cook Says Performance in China Has Improved Over Previous Quarter

Apple today announced its earnings results for the second fiscal quarter (first calendar quarter) of 2019, and ahead of the company's upcoming earnings call, Apple CEO Tim Cook shared some remarks on Apple's results with CNBC. According to Cook, Apple's performance in China improved over the previous quarter and saw greater strength towards the end of the quarter. A sales tax cut in the country decreased the price of Apple products, and Apple also made its own pricing adjustments in the country. Cook also told CNBC that the trade relationship between the U.S. and China had improved, resulting in a "much better" tone. "The tone is much better than it was in the November-December timeframe. I think that affects consumer confidence in a very positive way," Cook said.Apple had $10.22 billion in sales in its Greater China category, which includes Taiwan and Hong Kong. During the quarterly earnings call, Cook said that while worldwide revenue was down 17 percent, declines were smaller in the final weeks of the March quarter. Apple says that November and December were the most challenging months, which is an encouraging trend. Apple reported revenue of $58.02 billion and earnings per share of $2.46. Apple's guidance for the third fiscal quarter of 2019 is $52.5 to $54.5 billion, higher than analyst expectations and an indication that iPhone sales in China are

Apple's iPhone Sales in China Down an Estimated 30% in Q1 2019, Huawei Continues to Dominate

Apple's iPhone sales in China were down 30 percent during the first quarter of 2019, according to new shipment estimates shared today by Canalys. Apple shipped an estimated 6.5 million iPhones during the quarter, marking its worst decline in two years. It shipped fewer smartphones in the country than Chinese vendors Xiaomi, Vivo, Oppo, and Huawei, coming in as the number five brand in China. Huawei, the top vendor in China during Q1 2019, shipped 29.9 million smartphones for 34 percent market share. Huawei saw impressive growth during the quarter, with smartphone sales up 41 percent. Other smartphone vendors in China also saw drops in smartphone sales, though not as dramatic as Apple's decline. Apple held just 7.4 percent market share in China during Q1 2019, down from 10.2 percent in the year-ago quarter. According to Canalys analyst Mo Jia, introducing features like 5G is "vital" to prevent iPhone demand in China from shrinking even further.Apple's performance in China is concerning, given that the worst quarter for iPhone shipments is usually Q2 or Q3, not Q1 when new devices are still fresh. Apple has acted to cut iPhone retail prices, which has largely relieved the pressure from its channel partners. Despite the iPhone's installed base in China being well over 300 million, it is vital that Apple prevents users deserting it for Android vendors. Apple faces a challenge in China to localize its software and services offerings as quickly as in Western markets. Its hardware is therefore more exposed to competition in China than elsewhere. Bringing up-to-date

Apple Lowers Prices of iPhones, iPads, Macs, AirPods, and More in China as VAT Cut Takes Effect

Apple has lowered the prices of several products in China this week, including the latest iPhones, iPads, and AirPods. As noted by CNBC, the iPhone XR now starts at 6199 RMB on Apple's online store in China, nearly five percent lower than its previous 6499 RMB price tag. The higher-end iPhone XS and iPhone XS Max models each received a 500 RMB price cut as well and now start at 8,199 RMB and 9,099 RMB respectively. Likewise, the second-generation AirPods with the standard Lightning charging case now start at 1,246 RMB, down slightly from 1,279 RMB, and the 11-inch iPad Pro has been discounted to 6,331 RMB from 6,499 RMB previously. The price cuts appear to be due in part to a reduction in China's value-added tax (VAT) that went into effect today to help boost the economy there, but regardless of the reason, any price cut could be good news for Apple as it seeks to bolster sales in China. Last quarter, Apple issued its first revenue warning in 16 years due to "fewer iPhone upgrades" than it anticipated and "significantly greater" than expected economic weakness in the Greater China region. Apple already discounted iPhone prices at third-party resellers in China to improve

Tim Cook Travels to China, Meets With Vice Premier and Developers

Apple CEO Tim Cook is in China this week ahead of the annual China Development Forum that promotes economic growth in the country. Cook was photographed at an Apple Store in Beijing's central Wangfujing shopping district on Thursday, where he attended a music-related Today at Apple session. On Friday, Cook met with developers and visited the Palace Museum, which has an ARKit-based app that offers tourists an immersive experience. Later on Friday, Cook met with politician Sun Chunlan, a Vice Premier of the People's Republic of China. The state-run news agency Xinhua claims that Sun made positive remarks about Apple and the company's role in Sino-U.S. relations. Cook, who has shared pictures of his trip on Weibo, is reportedly set to attend the annual China Development Forum in Beijing on Saturday. Cook co-chaired the event in 2018, calling for stronger data privacy regulations in the wake of the major Facebook and Cambridge Analytica data scandal. Cook will then likely take a direct flight back to California in time for Apple's media event on Monday at Steve Jobs Theater, where the company is widely expected to introduce two new services for streaming video and

Chinese Online Retailers Start Second Round of iPhone Discounts

Online retailers in China have begun discounting iPhones for the second time this year. Reuters reports that several mobile vendors this week announced discounts on iPhone models, including Apple's latest flagship iPhone XS and iPhone XS Max. Gadget retailer Suning.Com Co Ltd said it would slash the price of the iPhone XS by as much as 1,000 yuan ($148.95) from its official price. Suning had lowered the prices of other iPhone models in January along with other retailers, but those cuts excluded the iPhone XS. Pinduoduo Inc, an e-commerce site best known for selling inexpensive goods, has also said it would sell the 64GB edition of the iPhone XS for 6,999 yuan, a drop of over 1,000 yuan from the official price.JD.com is also reportedly poised to offer discounts on its Apple products, including the iPhone XS and XS Max, which escaped the online retail giant's first major round of discounts in January. Apple first dropped iPhone prices for third-party distributors in China on January 10, allowing vendors to purchase iPhones more cheaply and pass those savings on to customers. Apple cut prices on most iPhone models, but the XR saw the biggest discounts. Apple launched the price cuts after seeing iPhone sales fall significantly in China during the holiday quarter of 2018, leading to lower iPhone revenue than expected. One report said Apple was seeing improved iPhone sales in China following the price cuts. Apple has also partnered with Ant Financial, the finance arm of Alibaba Group Holding

Apple Launches Promo in China Offering Interest-Free Financing When Purchasing New iPhone

Apple is teaming up with Chinese payments company Ant Financial Services Group, along with several local banks, to offer local customers interest-free financing on iPhones in China (via Reuters). Apple is continuously looking to boost smartphone sales in China, and this appears to be the latest move in the company's long-term plan to do so. On its China website, Apple explains that customers can pay 271 yuan ($40.31) per month for the iPhone XR, and 362 yuan ($53.87) per month for the iPhone XS. If customers trade in older models of iPhone, they'll get cheaper installment plans. In total, customers buying an iPhone worth a minimum of 4,000 yuan (around $595) will qualify for interest-free financing that can be paid over three, six, nine, 12, or 24 months. Apple has always struggled with iPhone sales in China, and according to Strategy Analytics, the company shipped an estimated 2.5 million fewer iPhones in China in 2018 than in 2017. The company's products have historically been categorized as too expensive for the China market, losing out to low-cost alternatives from popular local rivals like OPPO, Vivo, and Xiaomi. In recent weeks, reports have suggested that Apple is seeing improved iPhone sales in China thanks to recent price cuts to the iPhone XR, XS, XS Max, and older models. According to Feng, data sourced from Alibaba suggests that iPhone sales on the site have increased by 76 percent in China since January 13, 2019. The launch of China's limited-time promotion follows similar offers that have rolled out to a few regions around the

Red iPhone XS and XS Max Rumored to Launch in China This Month, Again Dropping PRODUCT(RED) Branding

A red variant of the iPhone XS and XS Max could be launching in China sooner rather than later, if a social media rumor proves to be accurate. A Weibo post spotted by iPhoneHacks.com claims Apple will launch the red color models by the end of this month, in a bid to boost struggling iPhone sales in the region. The leaker, who claims to have received the tip from sources in Apple's supply chain, says that Apple will call the model "China Red," and not the PRODUCT(RED) branding that the company typically associates with the color. Apple globally launched a mid-cycle (PRODUCT)RED edition iPhone 7 and iPhone 7 Plus in March 2017 and a similar edition for the iPhone 8 and iPhone 8 Plus in April 2018, so the timing wouldn't be completely off. Apple already sells a (PRODUCT)RED variant of the iPhone XR. There's also precedent for Apple using a different name in China – the company dropped the PRODUCT(RED) branding in the country for both the iPhone 7 and iPhone 8 models, instead promoting them simply as additional colorways. Apple has partnered with the (RED) Global Fund for nearly 13 years to sell a variety of red-colored devices and accessories. For each product sold, Apple makes an unspecified contribution to HIV/AIDS charity. However sex remains a controversial issue in China, where AIDS and HIV have been characterized in the past as a consequence of contact with the West. Despite the lack of any PRODUCT(RED) mention in China, Apple CEO Tim Cook assured MacRumors in a March 2017 email that the company upholds its charitable

iPhone Sales Growing Following Price Cuts in China

Apple is seeing improved iPhone sales in China following some recent price cuts on the iPhone XR, XS, XS Max, and older models that were introduced earlier in January, reports Chinese site Feng. Apple dropped iPhone prices for third-party distributors in China on January 10, allowing vendors to purchase iPhones more cheaply and pass those savings on to customers. Apple cut prices on most iPhone models, but the XR saw the biggest discounts. Shortly after Apple implemented the pricing cuts, vendors in China started offering discounts on various iPhone models. The XR, for example, was available from JD.com for 6099 yuan ($899), while Suning, an electronics store similar to Best Buy, started selling iPhone XR for 6199 yuan ($914). Those prices are more affordable than the iPhone XR from Apple's own online store, where the device is priced starting at 6499 yuan ($958). According to Feng, data sourced from Alibaba suggests that iPhone sales on the site have increased by 76 percent in China since January 13. Suning, meanwhile, saw Apple traffic and sales "explode" with the iPhone 8, 8 Plus, and XR in particular seeing purchase boosts. Apple sales from Suning have increased by 83 percent since January 11. Apple launched the price cuts after seeing iPhone sales fall significantly in China during the holiday quarter of 2018, leading to lower iPhone revenue than expected. The Cupertino company is hoping sales will soar during Chinese New Year in February, improving overall performance in China. Apple is also promoting older iPhone

Strategy Analytics: Apple Shipped an Estimated 2.5 Million Fewer iPhones in China in 2018 Than in 2017

Apple shipped an estimated 34.2 million iPhones in China in 2018, down from 36.7 million in 2017, according to new data shared today by Strategy Analytics. During the fourth calendar quarter of 2018 (Apple's first fiscal quarter), Apple shipped 10.9 million iPhones, down from 14 million in the fourth quarter of 2017. Apple surpassed Xiaomi to become the number four smartphone vendor in the country, but its iPhone sales fell short of Huawei, OPPO, and Vivo, all Chinese companies that make more affordable smartphones. For 2018 in total, Apple came in fifth in China, trailing behind the four major Chinese smartphone vendors. Huawei was the number one vendor in China, shipping an estimated 105.1 million smartphones during the year. OPPO shipped 82.8 million, Vivo shipped 79.3 million, and Xiaomi shipped 50 million. Apple lost market share in the fourth quarter of 2018, but gained ground overall in 2018. Apple held 10.1 percent of the smartphone market in the fourth quarter of 2018, down from 11.5 percent in the fourth quarter of 2017. Apple's total 2018 marketshare was 8.4 percent, up from 8 percent. Despite the slight year-over-year jump, Apple trails all major Chinese smartphone vendors in the country when it comes to market share, including Huawei, OPPO, Vivo, and Xiaomi. Fourth quarter smartphone shipments in China declined by 11 percent annually, with a total of 107.9 million units shipped by all vendors. That's down from 121.3 million in the fourth quarter of 2017. Smartphone shipments also fell 11 percent annually, with 408.5 million smartphones