Chinese telecommunications and consumer electronics giant Huawei has seen a significant resurgence in its smartphone business in China, posing a formidable challenge to its American rival Apple. 

According to data from Counterpoint Research released Tuesday, Huawei's smartphone sales surged by a remarkable 69.7% in the first quarter of this year, while Apple experienced a sharp decline of 19.1% in iPhone sales during the same period.

Apple's Challenge Amid Huawei's Comeback

Apple, which once held a dominant position in China's smartphone market, has faced intense competition from Huawei, particularly in the premium segment. 

"Apple's sales were subdued during the quarter as Huawei's comeback has directly impacted Apple in the premium segment," Ivan Lam, senior research analyst at Counterpoint, noted. "Besides, the replacement demand for Apple has been slightly subdued compared to previous years."

This setback has led Apple to drop from the top spot to the third position in China's smartphone market.

Huawei's resurgence can be attributed to the success of its latest flagship smartphone, the Huawei Mate 60, equipped with a high-end chip supporting advanced 5G connectivity. 

This model, along with Huawei's enduring brand reputation has propelled its massive share in the premium segment valued at over $600, according to the report.

This launch has reignited Huawei's competitiveness in the market despite previous challenges due to US sanctions imposed in 2019, which restricted its access to critical technology.

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Future Landscape of China's Smartphone Market

Looking ahead, Counterpoint Research anticipates continued growth in China's smartphone market, with a modest 1.5% year-on-year increase in the first quarter. 

Chinese smartphone manufacturers are focusing on integrating artificial intelligence (AI) features into their devices, catering to evolving consumer demands. 

This trend is expected to drive renewed interest and demand for smartphones, particularly those with innovative AI capabilities.

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