Apple's iPhone profit in China declined in May, falling to the fifth place behind local Chinese brands.

Research conducted in May by Counterpoint Research states that iPhones made up 10.8 percent of the devices sold in the region, which is lower from 12 percent in 2015, BGR reported. During the March quarter, Apple’s sales in Greater China, which includes Taiwan and Hong Kong, plunged by 26 percent compared to a year earlier.

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By comparison, Chinese vendor Huawei Technologies increased its lead by 17.3 per cent, and while Oppo doubled its share to 11 percent. Local Chinese brands including Vivo, Oppo, Huawei, and Xiaomi are now the top choices of buyers in the world’s most populated country. According to Counterpoint Research Director Neil Shah, these local brands have a combined market share of 53 percent.

Apple CEO Tim Cook has already publicly proclaimed that the Chinese market is an important part of the company's sales, according to Value Walk. The recent launch of the iPhone SE is expected to boost the company’s popularity in developing countries. Cook met with Liu Yandong, China’s vice premier in May. However, the meeting has not helped the tech giant to increase iPhone sales in the country.

In recent months, the Cupertino-based tech company has experienced a lot of setbacks in the form of lawsuits from the Chinese regulatory authorities. The setbacks in the Chinese market have affected Apple's ability to sell iPhones in the country.

Earlier this year, Apple faced a dispute relating to the use of the word “IPHONE” on leather goods. The company also lost a patent case against a little-known Chinese rival relating to its iPhone 6 and iPhone 6 Plus. Apple's iBooks and Movies services have also been shut down in the country.

The Cyberspace Administration of China (CAC) is also regulating Apple’s app store and other services. The CAC has released rules stating app stores must ensure the commercial viability for developers, who in turn must monitor customer usage.

Apple is set to release its financial report for the second quarter on July 26.

Tagsapple, china, iPhone, iPhone Sales in China, Huawei, Oppo, Xiaomi, Smartphone, iPhone sales, iPhone SE, Counterpoint Research