Xiaomi and Huawei are feeling the pinch in their homeland, according to a report, with the iPhone SE said to be eating into the Chinese firms’ sales. The most inexpensive iPhone ever was reported as having received over 3.4 million pre-orders before its release last month, with the Chinese enjoying the iPhone SE’s smaller chassis but powerful internals.

While smartphones from Chinese firms Xiaomi and Huawei have historically done extremely well in their home country thanks to their relatively low price and high quality, the iPhone SE’s arrival has punctured the bubble of both companies and Apple is reaping the rewards.

iPhone-SE

The report in question does come from the folks at Digitimes who are notoriously hit and miss with these kinds of rumors so we wouldn’t want to throw too much weight behind this one just yet. Apple does see China as a massive growth market and it is clear that the iPhone SE is well-suited to it in particular. If this Digitimes report is accurate, however, don’t expect the likes of Xiaomi and Huawei to sit idly by while Apple steps on their turf.

With the iPhone 7 and iPhone 7 Plus set to debut later this year, though, 2016 could be a huge year for the iPhone in China once again following its first fall in market share in the country for the year ending this past February.

The launch of relatively low-priced iPhone SE in China has squeezed market share from local brands, including Huawei, Xiaomi Technology, Vivo and Oppo, affecting the earning performance of these brands, said the sources.

The iPhone SE went on sale in March and features a 4-inch screen along with an iPhone 5s-like aesthetic. Under the hood though, the iPhone SE is very much a powerhouse, borrowing heavily from the iPhone 6s and iPhone 6 devices. Gone are the days where the 4-inch iPhone was the lineup’s ugly duckling.

iphone-SE-multiple

(Source: Digitimes)

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