Apple dropped to fifth place in Chinese smartphone shipments, losing ground in its biggest overseas market in a fresh blow for the technology giant.
iPhones made up 10,8% of devices sold in May, down from 12% a year earlier, according to Counterpoint Research. By comparison, Chinese vendor Huawei Technologies increased its lead with 17,3%.
CEO Tim Cook has publicly touted the importance of China, where the company is combating a slowing domestic economy and local vendors with increasingly popular devices.
The launch of the cheaper iPhone SE was meant to boost Apple’s popularity in developing markets and Cook met with China’s vice premier Liu Yandong in May.
Instead, it has suffered commercial, legal and regulatory setbacks in recent months leading to lawsuits and key products getting shut down.
Local brands Huawei, Vivo, Oppo and Xiaomi are now the top four smartphone makers in China with a combined market share of 53%, according to Counterpoint research director Neil Shah. Oppo almost doubled its market share to 11%.
Apple’s sales in Greater China, which also includes Taiwan and Hong Kong, fell by 26% during the March quarter compared to a year earlier, amid a slowing market.
Apple lost a patent case against a little-known Chinese rival relating to its iPhone 6 and iPhone 6 Plus, along with a trademark dispute relating to the use of ‘IPHONE’ on leather goods.
The company was forced to shut down its iTunes Movies and iBooks services in April — six months after they were first permitted.
Its app store and other services are also being increasingly regulated. The Cyberspace Administration of China last week released rules stating app stores must ensure the commercial viability of developers, who in turn must monitor customer usage. — (c) 2016 Bloomberg LP