Apple Tops China for First Time in Six Years After Huawei Fades

$Apple (AAPL.US)$was China’s top-selling smartphone brand in 2021’s final quarter, industry research showed, taking top spot in the world’s largest mobile market for the first time since 2015.

The shuffle marks a shift in market dynamics after U.S. curbs on technology exports crippled Huawei’s smartphone business, briefly the world’s largest. The Chinese networking giant was forced to spin off mobile arm Honor in 2020, which ranked fifth in the quarter after Xiaomi Corp. $Apple (AAPL.US)$ Chinese market share hit a record 23% in the final three months of 2021, Counterpoint estimated.

“Apple’s stellar performance was driven by a mix of its pricing strategy and gain from Huawei’s premium base,” research analyst Mengmeng Zhang said in the report, which estimates sales of phones to end-users rather than shipments.

Globally, smartphone demand may remain depressed as inflationary pressures, an economic downturn and a slowing replacement cycle dampen sales, while a persistent chip shortage curtails output. $Apple (AAPL.US)$ is said to have told its component suppliers that demand for the iPhone 13 lineup has weakened, signaling that some consumers have decided against trying to get the hard-to-find item.