Apple's sales rally may be 'short-lived'

The Chinese smartphone market is the largest smartphone market in the world, with India having now overtaken the U.S. to become the second largest market. The overall shipments declined 5% to 119 million units. Vivo's growth rate was the best of the top five with 26% growth, making it the most impressive performer in the top 3 after shipping over 20 million units.

According to Canalys, Apple's story of declining smartphone shipments in China is over for now, as shipments grew 40% from 8 million in Q3 2016 to 11 million in Q3 2017.

In the US, there have not been as many iPhone 8 buyers as the majority of Apple fans were supposedly waiting for the iPhone X. However, in China, it is a different story. However, Apple's China sales across all products, including the iPhone, have dropped precipitously over the last couple of years.

A survey by Canalys found that around 11 million iPhones were shipped in the third-quarter against 8 million past year in the same period in China. Looking ahead to the fourth quarter, Canalys research analyst Mo Jia thinks Apple's shipments will again decline.

The impact of the iPhone X, the much-anticipated device that goes on sale November 1, isn't reflected in this report but already limited supply around the phone and its expensive price tag - which starts at $1,000 for the most basic model - may mean the phone doesn't deliver stellar growth that the USA firm saw in China when it released the iPhone 6, its first larger sized device. He predicted that it is unlikely for Apple to sustain this growth in Q4 2017. Huawei, Oppo and Vivo were top three vendors in China, followed by Xiaomi and Apple, according to Canalys. "While the iPhone X launches this week, its pricing structure and supply are inhibiting". The iPhone X will debut next month and China seems to be excited about the same, cranking out the pre-orders minutes after it went live. The race to the top remains tight as Huawei, Oppo and Vivo took 19%, 18% and 17% market share respectively. In Q4 they are hoping to boost sales with the November 11 online shopping festival.



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