Apple's iPhone 16 sales in China have propelled the company back to the No. 2 position in the local smartphone market for the third quarter. This shift comes after Apple fell out of the top five in the previous three months, as reported by research firm IDC.

During the three months ending in September, iPhone shipments captured 15.6% of the market, placing Apple just behind Vivo, which held 18.6%. Although the new iPhone 16 models improved Apple's performance compared to earlier this year, the company's market share declined from 16.1% during the same period last year.

Apple's smartphone sales dipped by 0.3% year on year. However, the initial reception of the iPhone 16 series, released in September, has been comparable to that of the previous generation, according to IDC.

In contrast, Huawei Technologies experienced a remarkable 42% surge in shipments during the quarter, securing 15.3% of the market and closely trailing Apple. This growth marked the fourth consecutive quarter of double-digit growth for Huawei, which has made a significant comeback in the premium smartphone sector following the introduction of a new processor made entirely in China, resonating with national pride.

In the June quarter, Apple fell to the No. 6 position in China, overtaken by local brands amid fierce competition, trailing Vivo, Huawei, Oppo, Honor, and Xiaomi. This was the first time in years that Apple found itself so low in one of its key markets.

The Chinese smartphone market, the largest in the world, saw a 3.2% increase in handset shipments, totaling 68.8 million units in the third quarter, marking four straight quarters of growth. Arthur Guo, a senior research analyst for IDC China, noted that "a significant wave of device upgrades is propelling the sustained recovery of the Chinese smartphone market."

Local smartphone vendors Vivo, Huawei, and Xiaomi all recorded double-digit year-on-year growth in the third quarter. Vivo maintained its leadership position with a robust 21.5% growth in shipments. Xiaomi ranked fourth with a 14.8% market share, experiencing a 12.8% increase year on year as it strengthened its presence in both budget and premium segments.

Honor, a spin-off of Huawei, held fifth place with a 14.6% market share, although its shipments declined by 22.5% during the quarter.

To counter the rising competition, Apple has implemented various promotions for the iPhone 16 in China. Leading up to its official launch, major online retailers, including PDD Holdings’ Pinduoduo and Alibaba Group’s Taobao, offered discounts on the new model. In light of China's upcoming Singles' Day shopping festival, Apple has introduced additional price reductions on online platforms.

This week, Apple CEO Tim Cook visited mainland China for the second time this year, where he met with officials from the Ministry of Industry and Information Technology. They discussed the company’s future plans in China and issues related to cyber and data security. However, the meeting did not reveal any updates on when Apple’s new artificial intelligence service for iPhones would be available in the country, which is being marketed as a key feature of the new iPhone models.