iPhone 8 launch propels Apple to growth in China after 18 months of sales dips

Apple is finally back on track for growth in China.

The company has broken a series of sales declines, which date back to six quarters, with promising early signs of the new iPhone 8, according to a new report from Canalys. The analyst firm recorded an annual growth of 40% for Apple in the third quarter of 2017 with 11 million shipments in the quarter. He also pointed out that the iPhone 8 made a higher proportion of iPhone sales last year than the iPhone 7.

Apple's revenue from China is more than 50 percent lower than it was two years ago, according to the latest second quarter results, so growth is needed. Despite the progress made, the company ranked only fifth in the Canalys report.

Huawei led the field with 22 million deliveries, ahead of Oppo (21 million - the only annual decline) and Vivo (20 million). Xiaomi, who rejuvenated in 2017, finished fourth.

Beyond the raw data, there are some good things to remember.

First to Apple, who is not in trouble, according to Canalys in China.

The impact of the iPhone X, the long-awaited device for sale on Nov. 1, is not reflected in this report, but the already limited phone offer and high price tag - $ 1,000 for the most basic model - may mean that Phone does not deliver the stellar growth that the American company saw in China when it released the iPhone 6, its first larger device.

"Apple should not support this growth in the fourth quarter," Mo Jia said in a statement.

"With iPhone X launching this week, price structure and supply are hindering, iPhone X is enjoying a healthy gray market, but its popularity will not help Apple in the short term," Jia predicted.

Beyond Apple, which is so often the focus of the study of smartphone sales in China, given its importance to the company, it is clear that some brands are now dominating the Chinese smartphone market.

The Top Five vendors in the third quarter of 2017 accounted for 75% of all equipment shipped to China, according to Canalys. The analyst firm predicts that Xiaomi, thanks to his impressive performance during the big day of online shopping in China - on 11.11. - and the offline retail could get under the top three, but it's hard to see the others moving ahead. Best players in this phase.

This is particularly important as the data suggest that the growth of the Chinese smartphone market is over.

The Canalys report estimated that the market fell five percent year-on-year to 119 million shipments. This is a second decline in a row.

China remains the largest market for smartphones on the planet, but declines explain why many companies have focused on fast-growing markets such as India, which surpassed the US in the third quarter, and Southeast Asia.

These regions are not yet competing with China, but if competition is tough and the market is shrinking, they are more accessible sources of revenue.