Apple just got another iPhone China warning ahead of results

• Apple fell out of the top five smartphone shippers in China in Q2, The Wall Street Journal reported.
• Competitors like Vivo, Huawei, and Xiaomi are seeing increased shipments and demand, reports said.

Apple is still struggling to gain a strong foothold in China.

According to reports from Canalys and International Data Corp viewed by The Wall Street Journal, the iPhone maker fell out of the top five smartphone shippers in China during its second quarter. Another report by Counterpoint Research said that Apple's market share by sales decreased.

Meanwhile, competitors like Vivo, Huawei, and Xiaomi are seeing shipments increase, and demand for Chinese-made smartphones is on the rise, according to those same reports.

Apple's market share by sales in the second quarter was 15.5%, down almost 2% from the same time in 2023, according to the Counterpoint report viewed by the Journal. Still, smartphone shipments are on the rise even if Apple isn't seeing increases.

In May, it appeared that Apple was gaining ground as shipments in China surged, but the overall quarter yielded less optimistic results.

Apple's most recent earnings report that came out in May showed that Greater China accounted for 18% of its $91 billion revenue last quarter — an 8% decline from a year ago.

Apple will for sure have to answer questions about the Chinese market during its next earnings call on August 1.