In the smartphone industry, the mid-to-low-end market is predominantly volume-driven, yielding high sales figures but slim margins. Conversely, the premium segment is where substantial profits are realized.

The premium market typically encompasses devices priced above $600 (around RMB 4,355), accounting for approximately 25% of total smartphone sales.

Historically, this premium segment was dominated by Apple and Samsung, with Apple once holding over 80% market share.

Huawei's emergence challenged Apple, capturing a significant portion of its market. However, due to external pressures, Huawei relinquished much of its premium market share back to Apple.

Simultaneously, Xiaomi, Honor, OPPO, and VIVO surged into the premium segment, aiming to capitalize on Huawei's retreat and compete with Apple.

So, what's the current landscape? Let's delve into the data for clarity.

In 2018, Apple commanded 72% of the premium market, virtually unopposed. Huawei held only 16%, with other brands having negligible shares.

Huawei steadily grew, reaching 36% by 2020, while Apple's share dipped to 55%, marking one of its lowest points.

Under pressure, Huawei's premium market share declined to 21% in 2021 and 12% in 2022. Concurrently, Apple's share surged from 55% to 75%.

Xiaomi capitalized on Huawei's pressures, taking over part of the premium market and significantly boosting its share.

By 2023, the scenario shifted with Huawei's Mate 60 re-entry. Huawei resumed its ascent in the premium segment, while Xiaomi also continued to grow.

In 2024, Apple's premium market share dropped to 54%, setting another historical low. Huawei's share rose to 29%, and Xiaomi's to 5%.

While Apple still dominates with a market share exceeding that of all other brands combined, the trend indicates increasing challenges. The rise of Huawei, Xiaomi, and others poses a serious threat to Apple's position.

This might explain Apple's recent launch of the iPhone 16e. Perhaps sensing competition in the premium segment from Huawei and Xiaomi, Apple is venturing into the mid-range market.