Apple Falls to Third Place in China’s Smartphone Market in 2024
Apple lost its position as China’s top smartphone seller in 2024, with domestic brands Vivo and Huawei surpassing the iPhone maker amid a 17% decline in its annual shipments, according to data from research firm Canalys.
This marks Apple’s steepest annual sales drop in China, with declines recorded across all four quarters—including a significant 25% drop in the final quarter.
For the year, Vivo led the Chinese smartphone market with a 17% share, followed by Huawei at 16% and Apple at 15%, highlighting the growing competition Apple faces from domestic manufacturers in one of its largest global markets.
Factors Behind Apple’s Decline
Analysts point to several challenges affecting Apple’s performance, including the lack of artificial intelligence features in its latest iPhones, especially in a market where AI-powered services like ChatGPT are unavailable.
“This is Apple’s worst annual performance in China,” said Canalys analyst Toby Zhu. “Its premium position is being challenged by Huawei’s flagship releases, the rise of foldable phones, and Android brands like Xiaomi and Vivo strengthening consumer loyalty through innovation.”
Apple had previously enjoyed four years of growth in China after U.S. sanctions on Huawei in 2019 restricted its access to American technology. However, Huawei made a strong comeback in August 2023 with new smartphones powered by domestically produced chipsets, driving a 24% surge in shipments in the fourth quarter.
Apple’s Response and Market Trends
Apple has turned to rare discounts to boost sales, launching a four-day promotion from January 4-7, offering up to 500 yuan ($68.50) off iPhone 16 models. Leading Chinese e-commerce platforms, including Alibaba’s Tmall, followed suit, offering discounts of up to 1,000 yuan ($137) on the latest iPhones.
Meanwhile, Xiaomi recorded the strongest growth among the top five smartphone vendors, with a 29% increase in fourth-quarter shipments, while Oppo and Vivo saw gains of 18% and 14%, respectively.
Overall, China’s smartphone market saw a 4% year-on-year growth in 2024, with total shipments reaching 285 million units.
