Apple falls behind in China
Apple's dominance in China has been overtaken by local rivals Vivo and Huawei, according to Canalys research. In 2024, Apple’s iPhone shipments in China declined by 17%, marking its steepest annual sales drop in the region. The downturn included shrinkage across all four quarters, with a significant 25% decline in the final quarter, CE Report quotes Kosova Press.
For the year, Vivo secured 17% of the Chinese smartphone market, followed by Huawei at 16% and Apple at 15%. The results highlight growing competitive pressure from domestic manufacturers in one of the world’s largest markets. Analysts suggest factors like the lack of advanced AI features in Apple's latest iPhone, coupled with the unavailability of ChatGPT in China, may be affecting Apple’s competitiveness.
Apple had previously enjoyed steady growth in China for four years following U.S. sanctions on Huawei in 2019. These sanctions limited Huawei’s access to American technology. However, Huawei made a strong comeback in 2023, launching premium phones equipped with domestically produced chips. The Chinese tech giant reported a 24% increase in shipments during the fourth quarter.
To counter declining sales, Apple ran a promotional campaign in early January, offering discounts of up to 500 yuan ($68.50) on its iPhone 16 models via official channels. Major Chinese e-commerce platforms followed suit, with Alibaba’s Tmall offering discounts of up to 1,000 yuan ($137) on the latest iPhone series.
China’s smartphone shipments for 2024 saw a modest 4% year-over-year increase, reaching 285 million units.
