In 2024, Apple lost its position as the top smartphone seller in China, with local competitors Vivo and Huawei surpassing the tech giant. According to data from research firm Canalys, Apple’s annual shipments in China fell by 17%, marking the company’s largest-ever annual sales decline in the country, which included a 25% decrease in the final quarter alone.
For the entire year, Vivo led the market with a 17% share, followed by Huawei with 16% and Apple with 15%. This shift underscores Apple’s intense competition from domestic brands in one of its largest global markets.
The decline in Apple’s market share also reflects the impact of lacking artificial intelligence capabilities in its latest iPhones, a significant feature in China where services like ChatGPT are unavailable. “This marks Apple’s worst annual performance in China,” noted Canalys analyst Toby Zhu.
Apple has been dethroned as the top smartphone seller in China. Figures from research firm Canalys show it was overtaken by local rivals in 2024 https://t.co/JdK4Qj7XOf pic.twitter.com/ZgZuXJFyX0
— Reuters (@Reuters) January 16, 2025Zhu pointed out several challenges to Apple’s premium market position: “Huawei’s continuous flagship releases, the proliferation of domestic foldable phones in high-price segments, and Android brands like Xiaomi and Vivo enhancing consumer loyalty through technological innovations.”
Huawei’s Resurgence and Apple’s Response
Following U.S. sanctions in 2019, which limited Huawei’s access to American technology, Apple enjoyed four years of steady growth. However, Huawei has made a notable comeback in the premium segment since launching new phones with locally made chipsets in August 2023, achieving a 24% rise in fourth-quarter shipments.
Apple, in response to declining sales, has implemented rare price cuts. From January 4-7, 2025, the company offered discounts of up to 500 yuan ($68.50) on its iPhone 16 models through official channels.
Further intensifying the competition, major Chinese e-commerce platforms like Alibaba’s Tmall also introduced significant promotions, with discounts reaching up to 1,000 yuan ($137) on the latest iPhone 16 series.
Among the top five vendors, Xiaomi showcased the most robust growth with a 29% increase in fourth-quarter shipments, while Oppo and Vivo also recorded gains of 18% and 14%, respectively. Apple has yet to comment on these developments.
