However, Canalys is skeptical that its forecast of nearly 40 percent growth in iPhone units in China is sustainable.
A few days after publishing its report of the Indian smartphone market in Q3 2017, Canalys has published a report of the Chinese smartphone market in that same quarter.
Huawei remains the top smartphone manufacturer in China, but the gap between the first, second and third-placed manufacturers is narrow, as Huawei, Oppo and Vivo took 19%, 18% and 17% market share respectively.
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For that quarter, Apple shipped roughly 11 million iPhone units in China, which was up 38% from the 8 million shipped during the same quarter previous year. The iPhone 8 accounted for a higher proportion of sales this year than the iPhone 7 series did in the same quarter last year. A 40% increase has already been demonstrated by Apple in the year 2017, as you can view in this graph.
Despite renewed momentum in smartphone sales, Canalys believes that Apple won't be able to carry this forward.
"Apple's growth this quarter is only temporary. The high sales cater to pent-up demand of iPhone upgraders", said Jia Mo, Canalys' research analyst. As of now, most people are not much interested in iPhone 8, which looks more like an updated version of iPhone 7, they are planning to purchase iPhone X because of its three major highlights i.e. Face ID, bezel-less display and super retina screen.
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"While the iPhone X launches this week, its pricing structure and supply are inhibiting interest". "The iPhone X will enjoy a healthy grey market status, but its popularity is unlikely to help Apple in the short term", Jia predicted.
CEO Tim Cook said a year ago that China would be a key to Apple's growth going forward.
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Apple, which reports fiscal fourth-quarter financials on Thursday, typically breaks out revenue by region, but for the number of devices sold, it provides only a global figure.