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Apple Slips to Third Place in China's Smartphone Market in 2024

Apple has been dethroned as the top smartphone seller in China for the year 2024. According to data from research firm Canalys, local competitors Vivo and Huawei have surpassed the tech giant in annual shipments, marking Apple's largest-ever sales decline in the country, with a significant 17% drop.


Credit: APPLE
Credit: APPLE

Throughout the year, budget smartphone manufacturer Vivo claimed a 17% market share, closely followed by premium rival Huawei with 16%. Apple, on the other hand, secured a 15% market share, highlighting the increasing competition it faces from domestic brands in one of its key global markets.


The decline in Apple's sales can be attributed to various factors, including the absence of artificial intelligence features in the latest iPhones sold in China, where ChatGPT is not available. Canalys analyst Toby Zhu noted, "This marks Apple's worst annual performance in China," pointing out the challenges Apple faces in the premium market segment.


Huawei, which had been impacted by U.S. sanctions in 2019, limiting its access to American technology, made a strong comeback in the premium segment in 2023. The company's introduction of new phones with locally-made chipsets led to a remarkable 24% increase in shipments in the fourth quarter of 2024.


Credit: APPLE
Credit: APPLE

To counter the decline in sales, Apple resorted to offering rare discounts to stimulate purchases. The company launched a four-day promotion in China, providing price cuts of up to 500 yuan ($68.50) on its iPhone 16 models through official channels. Major Chinese e-commerce platforms, including Alibaba's Tmall marketplace, also announced discounts of up to 1,000 yuan ($137) on the latest iPhone 16 series devices.


Despite the challenges faced by Apple, the overall smartphone market in China saw a 4% year-on-year increase in shipments in 2024, reaching a total of 285 million units. Among the top five vendors, Xiaomi, known for its budget-friendly devices, experienced the strongest growth with a 29% increase in fourth-quarter shipments, while Oppo and Vivo recorded gains of 18% and 14% respectively, as per Canalys data.

 
  • Apple loses top spot in China's smartphone market to Vivo and Huawei in 2024.

  • Budget smartphone maker Vivo claims a 17% market share, followed by Huawei with 16% and Apple with 15%.

  • Factors such as the absence of AI features in iPhones sold in China contribute to Apple's declining competitiveness.


Source: REUTERS

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