Analysis | Huawei, Vivo are reasons why the iPhone is losing ground in China

Cheap “me-too” smartphones are no longer the only thing Apple can blame for iPhone’s falling sales in China as the country’s most successful manufacturers are quietly gaining ground in the premium market as well.

Apple, which has long dominated China’s top 10 bestselling high-end smartphone list, saw the most number of Chinese rivals break into the category priced over 4,000 yuan (US$579.9) in the quarter ended in March, according to Counterpoint Technology Market Research.

Apple still occupies five spots in the top 10 list with its iPhone 7 Plus 128G being the top seller among all premium smartphones in China, the world largest smartphone market. However, four Chinese models – three from Huawei Technologies and one by Vivo – have made it into the list with one spot left for Samsung Electronics.

“The top 10 premium phone list was practically a duopoly by Apple and Samsung until Huawei became the first Chinese game changer in the high-end crowd about one year ago. The first quarter of 2017 is the first time that we see Vivo get into the list,” said James Yan, Beijing-based research director of Counterpoint Technology.

Chinese smartphone brands have been tightening their grip in China, grabbing local market share and squeezing out Apple and Samsung by producing cheaper phones with not so cheap features.