“China’s competitive smartphone market is witnessing a significant shake-up, with a recent report from Canalys shedding light on the drastic decline of Apple’s market share. Amidst the iPhone sales slump, two Chinese giants, Vivo and Huawei, have seized the opportunity to take the lead in the country’s lucrative mobile market. As the battle for dominance intensifies, we take a closer look at the latest numbers and what they reveal about the ever-changing landscape of the global smartphone industry. In this article, we’ll dissect the latest Canalys report, exploring the implications of Apple’s decline and the rising fortunes of Vivo and Huawei in China’s booming smartphone market.”
Global Market Trends
Stock Market Gains
As reported by Morningpicker, the Paris stock market surged on big gains for the luxury sector after Cartier owner Richemont reported record sales. This comes as global equities mostly pushed higher, reassured by strong earnings and inflation data. On Wall Street, both the S&P 500 and Nasdaq pushed higher at the opening bell thanks to robust bank earnings.
“There is a good bit of news to digest this morning, including another batch of better-than-expected earnings results from the likes of Bank of America, Morgan Stanley, US Bancorp, and PNC Financial Services,” said Patrick O’Hare, a Briefing.com analyst. Shares in Bank of America rose 0.7 while those in Morgan Stanley jumped 2.5 percent. Shares in US Bancorp slumped 3.9 percent.
Inflation and Interest Rates
Relief on Wall Street came as inflation data provided a much-needed shot of relief to investors, reviving hopes of further cuts to interest rates. “Wall Street’s relief rally on Wednesday highlights how worried investors have become, particularly about rate cuts and inflation,” said Bret Kenwell, a US investment analyst at eToro trading platform.
However, there remains a certain amount of caution ahead of Donald Trump returning to the White House next week. He has promised to ramp up tariffs on imports, and slash taxes and regulations, something that many fear could reignite inflation. Oil prices eased despite uncertainty over a ceasefire deal between Israel and Hamas.
Economic Data and Forecasts
Data out Thursday showed gains in US retail spending had slowed to 0.4 percent in December, missing market expectations of a 0.5 percent gain. “Combined with overwhelming negative sentiment, the latest ‘good not great’ retail sales figure might be enough to thread the needle for Wall Street right now and keep Wednesday’s rally intact,” Kenwell added.
European and Asian indices gained after a Wall Street rally on Wednesday. It was also driven by strong bank earnings as well as inflation data that provided a much-needed shot of relief to investors and revived hopes of further cuts to interest rates. The Paris stock market surged around two percent on big gains for the luxury sector after Cartier owner Richemont reported record quarterly sales.
Threats to Inflation and Trade War
Impact on Global Economy: Trade War and Tariffs
President-elect Donald Trump said he plans to use executive orders when he takes office in January to institute tariffs of 25 percent on all products imported from Canada and Mexico, and 10 percent on those from China. The tariffs on the United States’ three largest trading partners would be retaliation for the flow of fentanyl and migrants across U.S. borders, he said.
More than $1.3 trillion worth of goods came from the three countries in 2023, according to U.S. Census Bureau data, including gas, cars, and smartphones. The proposed tariffs could have a seismic effect on all four countries. They could raise the price of everyday items for U.S. consumers, if companies add the additional cost to sale prices.
They could change the playing field for local producers, and other nations that trade with the United States, if their products are not hit with tariffs. They could also result in retaliatory tariffs against U.S. businesses, John Veroneau, who was a trade negotiator under President George W. Bush, told The Post.
Trade with Mexico, Canada, and China
The United States conducts more trade with Mexico than any other country. It imported $475 billion in goods from Mexico last year and exported almost $323 billion. About 80 percent of Mexican exports go to the United States, and the vast majority of those last year were manufactured goods, according to bank BBVA.
The United States imported more than $400 billion worth of manufactured goods, compared with about $20 billion of products from the Mexican agriculture, forestry, and livestock sectors; and about the same from the oil, gas, and mining sectors, according to the bank. Goods included cars and car parts, computers, and other electrical equipment, beverages, medical instruments, and household appliances.
Canada is the United States’ second-ranked trading partner: The United States imported more than $418 billion in goods from Canada in 2023, and exported $354 billion. The top goods that the United States imports from Canada are crude oil and related products such as petroleum gas; vehicles such as cars and car parts; and machinery such as turbines, engines, and construction equipment parts, according to global research firm Trading Economics.
China is the United States’ third-largest trading partner. The United States imported almost $427 billion in goods last year and exported almost $148 billion. The top goods the United States imported from China last year were electronics, including phones; machinery such as computers; toys, games, and sporting equipment; furniture; and plastics, according to Trading Economics.
Conclusion
Global Mobile Market Shifts as Apple Falters in China
In a significant turn of events, Canalys’ latest report reveals that Apple’s iPhone sales have taken a hit in China, with Vivo and Huawei emerging as the new market leaders. According to the data, Vivo’s market share has surged to 19.3%, while Huawei follows closely behind with 18.1%. This slump in iPhone sales can be attributed to several factors, including the ongoing global economic uncertainty, increased competition from emerging brands, and the growing popularity of 5G technology. The Chinese market, in particular, has become a crucial battleground for tech giants, with the country’s large and growing consumer base posing significant challenges to established players.
The implications of this shift are far-reaching, with significant consequences for Apple’s global market share and revenue. As the Chinese market continues to evolve, it’s likely that other brands will accelerate their expansion efforts, further fragmenting the market and creating opportunities for innovation and differentiation. Meanwhile, Apple will need to reassess its strategy and adapt to the changing landscape to maintain its competitive edge. The report highlights the importance of understanding the nuances of the Chinese market, where consumer preferences and technological advancements can make or break a brand’s fortunes.