Apple Widens China Smartphone Lead

iPhone shipments rise roughly 20% despite broader weakness

This article first appeared on GuruFocus. Apple (NASDAQ:AAPL) and Huawei widened their lead in China's smartphone market during the June quarter as premium demand held up while higher component costs hurt lower-priced Android rivals. China's overall smartphone market fell 4.3% year over year, but Apple and Huawei each grew shipments by roughly 20%, according to IDC.

They were the only major vendors to post growth as shoppers either moved toward high-end devices or delayed upgrades altogether. Apple designs the iPhone, Mac, iPad and other consumer devices, while Huawei sells smartphones, networking equipment and enterprise technology. Both companies have strong positions in China's premium handset market.

The memory chip shortage has pushed Android vendors to raise prices, weakening demand and squeezing shipments. First-half smartphone shipments in China totaled about 134 million units, down 4.2% from a year earlier.