New data released Wednesday from a Chinese government-affiliated research firm showed sales of foreign-branded smartphones, including Apple’s iPhone, fell 44.25% year-on-year in China in October, while overall phone sales in China have increased 1.8%, Reuters reported.

The data released by the China Academy of Information and Communications Technology revealed sales of foreign-branded phones in China decreased to 6.22 million units last month, down from 11.149 million units a year earlier.

The decrease of foreign phone sales comes in the wake of Chinese tech conglomerate Huawei’s rise to the top of the phone market in China.

Huawei was widely popular in China’s smartphone market last year when it released the Mate 60 Pro, a phone with a tiny computer chip more advanced than any other chip previously made by a Chinese company.

Chinese consumers have eagerly embraced Huawei’s smartphones, drawn to the appeal of locally made technology — an option that has swayed many who might have previously chosen iPhones.

On Tuesday, the Chinese phone maker launched the next generation of the Mate 60 Pro, the Mate 70 series. The smartphone was described by Huawei’s consumer group chairman Richard Yu as the “smartest” Mate phone, The New York Times reported.

The Mate 70 series features hardware and software that are the most independent from Western influence to date. Highlights of Huawei’s newest phone include artificial intelligence-enabled functions and improved photography. The phone uses an operating system of HarmonyOS, which allows the smartphones to connect with smart devices.

Huawei’s ability to self-supply the chips required for its hardware and software represents a notable development, following previous U.S. measures to restrict the company’s access to key partners and suppliers.

AI technology relies on advanced semiconductor chips, a critical resource that has received attention amid tensions between Beijing and Washington, as both countries compete to dominate the advanced technology industry.

Apple’s iPhone 16 features AI capabilities, but these features have yet to be implemented in iPhones in China.

Apple, which considers China its second-most important market, has seen its market share decrease substantially. Apple CEO Tim Cook is traveling to China this week for the third time this year to attend an industry conference.
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