Apple is no longer the leading smartphone maker in China. On the back of more affordable devices, Chinese device maker, Xiaomi took back the top spot from Apple, reporting a 15.8% market share in the second quarter of 2015. Huawei came in second with a 15.4% share, according to Counterpoint Research. Apple is now No. 3 in the world’s largest smartphone market with a 12.2% share.
Apple initially took over the top spot in China in the last quarter of 2014 riding the release of the iPhone 6 and iPhone 6 Plus. With no new products released this quarter from Apple, its more affordable local competitors are taking advantage.
The report attributed Xiaomi’s performance to the company’s release of new LTE models and clearing out older inventory.
“The China smartphone market continues to mature, remaining stagnant quarter-on-quarter,” analyst Jingwen Wang said in a press release. “Competition among major brands has never been so intense. Huawei recorded the highest smartphone shipments in its history without compromising its product margin or profitability.”
China is becoming increasingly important to Apple as that country recently passed the U.S. as the biggest consumer of iPhones. Even with this slippage in market share, Apple is on track to add almost $60 billion in overall revenue from China this year, according to Counterpoint Research.
Apple CEO Tim Cook has already acknowledged the complexity of the Chinese market, saying he expects some “speed bumps” due to China’s saturated market. Research firm, IDC China, predicts the Chinese smartphone market will remain stagnant throughout the rest of 2015.
Samsung came in fifth in Counterpoints rankings behind Vivo, another growing Chinese manufacturer, which reports 250% growth over last year.
