China accounts for one-third of global smartphone shipments. According to Canalys, Chinese buyers are more inclined to local brands such as Huawei, Oppo, Vivo and Xiaomi. These four brands also dominated the top four in the Chinese mobile phone market last year.
Apple ranked fifth. Samsung has not been able to enter the top five.
In 2016, Apple's mobile phones shipped a total of 43.8 million units in China, down 18.2% from 2015. There has been no sign of improvement in the 2017 data so far.
"The outlook for Apple this year is still bleak, and it is difficult to return to the heyday of 2015 when it comes to China's performance," said Canasly analyst Jessie Ding.
The decline in the Chinese market has had a serious impact on Apple's global shipments, which combined to reduce iPhone global shipments by about 7%.
But Chinese buyers are "looking for the 10th anniversary of the iPhone," Ding said.
The iPhone 8 may be successful, but a mobile phone may not be able to change the long-term trend of Chinese buyers buying local brands.
In many small cities in China, Huawei, Vivo and Oppo sell very well. At the same time, these brands are also investing heavily in counterattacking big city markets, posing a further threat to Apple.
Apple is also facing a similar dilemma in India. The brand awareness of the iPhone is limited to urban areas, and its price is too high for most people. Apple recently began assembling and producing iPhones in India.
Many Chinese brands have launched new phones with their main cameras and screens this year. Two of them are represented by Huawei Mate 9 Pro at this year's CES. Huawei is a world-renowned manufacturer of network equipment, and it also produces its own chips like Samsung and Apple.
Other Chinese brands such as LeTV have also begun to seek international development. LeEco even took the lead in releasing the ultra-thin mobile phone that canceled the earphone hole in front of Apple.
China's three major smartphone makers are also competing with each other. Huawei shipped 76.20 million units in 2016, Oppo shipped 73.2 million units, and Vivo also had 63.2 million units. Xiaomi’s market share has dropped by about 21% to 51.4 million units.
A survey released this week by IDC also showed that the iPhone market share in China declined. IDC placed Apple in the fourth position, before Xiaomi. IDC said that China's total shipments of smartphones in 2016 were 467 million units, an increase of 8.7%. But at the same time, Apple's shipments fell by 23.2%, a total of only 44.9 million units. According to IDC statistics, Oppo, Huawei and Vivo occupy the top three seats of Chinese smartphone manufacturers.
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