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BEIJING —The global launch of the iPhone 7 on Friday is crucial to Apple’s fortunes in China Malcom Brown Jersey , but both it and its biggest rival Samsung, hit by a recall over exploding batteries, are struggling in the face of upstart local competitors.

The U.S. and South Korean firms were relegated to fourth and fifth place respectively in the Asian giant’s smartphone market in the first half of this year Joe Thuney Jersey , according to consultancy Canalys.

Ahead of them came three Chinese firms, leader Huawei with a 16% share, then two companies little known elsewhere Deatrich Wise Jr. Jersey , Vivo and Oppo.

Apple faces “a lot of challenges and pressures” in China from local manufacturers who are “developing medium- to high-end handsets and offer a lot of flagship products”, said Canalys China analyst Jessie Ding.

The iPhone 7—which comes with an improved camera, a water resistant body and minus an earphone jack—“doesn’t have many innovative features” Antonio Garcia Jersey , she said, pointing out that its double camera function was available on a Huawei smartphone six months ago, and it lacks wireless charging capabilities.

In its most recent quarterly results Derek Rivers Jersey , Apple said Greater China dropped from second to third place among its markets in the April-June period—when market research firm IDC says its iPhone sales collapsed by 32 percent year-on-year.

For its part, Samsung has had to recall 2.5 million of its flagship Galaxy Note 7 handsets after faulty batteries caused some to explode during charging.

The company has handled the issue badly, said Neil Mawston of Strategy Analytics Duke Dawson Jersey , with slow decision-making, poor communications and a lack of coordination, and its image risks suffering.

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