Huawei and Xiaomi are the two largest smartphone manufacturers in China at the moment. These two companies have managed to sell quite a few devices last year (108 and 70 million, respectively), and are looking to improve upon their results. Well, it seems like that might not be that easy, the competition is fierce, and especially in the Chinese market. Well, it seems like Apple actually managed to increase competition even more, read on.
As you probably already know, Apple has introduced their new device, the iPhone SE, quite recently. The iPhone SE is the most affordable iPhone ever announced, and it seems like Chinese consumers are more than interesting in this smartphone. According to a recent report, the iPhone SE managed to receive 3.4 pre-orders in China, which essentially means that Huawei and Xiaomi lost part of their consumers. Huawei and Xiaomi are not the only companies affected by this though, same can be said about Oppo, Vivo, Meizu, and a number of other China-based companies. Now, in addition to what we already said, a report also mentioned that the handset supply chains in China and Taiwan are basically refusing to built up inventories of parts, and the iPhone SE is partially responsible. Now, Apple's new iPhone is not the only reason, supply chains kept their camera module inventories high last year, and have shipped only 70%-80% of those sensors, despite different projections.
All in all, the competition is fierce in China, and it seems like analysts can never get it right. The smartphone market has a mind of its own, but one thing is for sure, China will be home to far less smartphone manufacturing companies in one year's time. There are over 300 registered smartphone manufacturers in China (based there), and approximately half of them won't make it according to projections. We'll see what happens in the coming months, but it seems like Apple's new iPhone is becoming quite a success in China. It managed to attract a ton of consumers to hit the pre-order button, who knows what will happen once it becomes available for purchase.