(Adds Apple's global market share, China revenue, shares in

paragraphs 6-9)

    By Liam Mo and Brenda Goh

       BEIJING, April 23 (Reuters) - Apple's smartphone

shipments in China tumbled 19% in the first quarter of the year,

the worst performance since 2020, as the iPhone maker took a hit

from Huawei's HWT.UL new product launches in the premium

segment, market data showed.

    Apple's share in the world's biggest smartphone market fell

to 15.7% in the first quarter from 19.7% a year earlier. That

put it almost level with Huawei, which saw sales jump 70%,

according to research firm Counterpoint.

    Apple AAPL.O lost its crown as the biggest smartphone

seller in China to rival Vivo, sliding to third place in the

quarter, followed by Huawei whose market share jumped to 15.5%

from 9.3% a year earlier. Honor, a mass market brand spun out of

Huawei, was in second place.

    "Huawei’s comeback has directly impacted Apple in the

premium segment. Besides, the replacement demand for Apple has

been slightly subdued compared to previous years," said

Counterpoint analyst Ivan Lam in a press release.

    "For the second quarter, the possibility of new color

options combined with aggressive sales initiatives could bring

the brand back into positive territory," Lam said, adding it is

seeing slow but steady improvement in weekly iPhone sales.

    China is Apple's third-biggest market and generated around

17% of its total revenue in the October-December quarter.

        Its market share loss in China comes after separate data

showed earlier this month that the U.S. firm suffered nearly a

10%

    drop

     in global smartphone shipments in the first quarter of

2024, hurt by intensifying competition by Android smartphone

makers led by Samsung Electronics 005930.KS.

        Samsung clinched the top phonemaker spot from Apple in

the first quarter.

        Shares of Apple slipped 0.4% in premarket trade on

Tuesday. The stock has fallen about 14% so far this year and

posted its worst weekly performance in over eight months on

Friday.

    Throughout the first quarter, Apple launched campaigns in

China to entice consumers with discounts, including subsidizing

certain iPhone models by as much as 1,300 yuan ($180).  

    Huawei last week released its Pura 70 series of high-end

phones after launching the Mate 60 series in August. The Mate 60

was seen as a comeback for the Chinese firm in the high-end

market and described as a triumph over U.S. sanctions on the

company, as the handsets contain an advanced China-made chip.

    U.S. Commerce Secretary Gina Raimondo said on Sunday that

the chip powering Huawei's flagship phone is not as advanced as

American chips, arguing it showed U.S. curbs on shipments to the

telecoms equipment giant are working.

    Canadian research firm TechInsights expects overall

shipments in China this year to top 50 million units, including

10 million for the Pura 70 series. That would make Huawei the

No. 1 seller with a 19% market share, up from 12% in 2023.

    In the first quarter, China's smartphone market grew 1.5%,

marking the second consecutive quarter of positive growth,

according to Counterpoint.

(Reporting by Liam Mo and Brenda Goh; Editing by Miyoung Kim,

Kirsten Donovan and Kim Coghill)

((liam.mo@thomsonreuters.com;))