Apple’s Fortunes in China Worsen, Research Firms Say

Apple ( AAPL ) is suffering in China as local rivals overtake it, three new reports by research firms monitoring shipments in the world’s largest smartphones market showed.

The declines in Chinese iPhone sales come even as Apple retail partners have implemented heavy discounts to attract customers. The country’s slowing economy is also putting a damper on consumption.

Apple China iPhone Shipments Fall 3.1% in Q2, IDC Says

Apple’s China iPhone shipments fell 3.1% year-over-year in the second quarter, according to preliminary data from IDC, while overall Android phone sales rose 11.1%.

China’s Huawei was the top smartphone seller in China in the first half of the year, although local rival vivo took the top spot in the second quarter, according to IDC China senior research analyst Arthur Guo.

The two, along with another domestic player, Xiaomi, all registered “large double-digit growth” in the quarter, leading Apple to drop into sixth place in IDC’s rankings for sales in the country.

Separately, Counterpoint said that Apple posted “single-digit” Q2 sales declines, even as smartphone sales in the country increased 6%.

Entirely Domestic Sellers in China’s Top 5 for First Time, Canalys Says

Finally, Canalys noted that local vendors are dominating the top five for the first time, with Apple’s 14% China market share marking a 2% decrease from the prior year.

“Chinese vendors’ strategies for high-end products and their deep collaboration with local supply chains are starting to pay off in hardware and software features,” Canalys Research Analyst Lucas Zhong said.

The U.S. firm’s travails in China reflect its challenges worldwide, as its global market share —and those of the other premium phone seller, South Korea’s Samsung—decline.

Apple shares were up about 1% an hour before the opening bell Friday.