Apple has been overtaken by local rivals Vivo and Huawei, falling to third place in China’s smartphone market in 2024, according to data from research firm Canalys.
This marks Apple’s largest-ever annual sales decline in China, with shipments dropping by 17% year-over-year.
In the highly competitive Chinese market, Vivo captured 17% of the market share, Huawei followed with 16%, and Apple lagged behind with 15%.
Apple’s decline was consistent throughout the year, including a significant 25% drop in the fourth quarter.
The lack of artificial intelligence features in the latest iPhone models, particularly in a country where AI-driven services like ChatGPT are unavailable, is cited as a key factor impacting Apple’s competitiveness.
Canalys analyst Toby Zhu pointed out that Apple faces increasing challenges in the premium segment, with Huawei’s flagship releases and the rise of domestic foldable phones adding pressure.
Android brands like Xiaomi and Vivo are also building consumer loyalty through technological innovations.
This shift in market dynamics follows a period of four years in which Apple experienced growth, buoyed by U.S. sanctions on Huawei that restricted its access to American technology. However, Huawei has staged a strong comeback since August 2023, launching new phones powered by locally-made chipsets and seeing a 24% increase in shipments in the final quarter of 2024.
To combat declining sales, Apple resorted to discounts, including a four-day promotion offering price cuts of up to 500 yuan ($68.50) on the iPhone 16 models.
Chinese e-commerce platforms, including Alibaba’s Tmall, also joined in, offering discounts of up to 1,000 yuan ($137) on the latest iPhone series.
Meanwhile, budget-focused Xiaomi led the growth among top vendors, posting a 29% rise in shipments in the fourth quarter, while Oppo and Vivo saw increases of 18% and 14%, respectively.
Overall, smartphone shipments in China grew by 4% year-on-year in 2024, reaching 285 million units.
