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According to research firm Canalys, Apple lost its top spot in the Chinese smartphone market in 2024. Vivo and Huawei outpaced the iPhone maker, which faced a significant decline in shipments – Apple’s annual decline was 17%, including a 25% decline in the last quarter, Reuters reports.
New market leaders
At the end of the year, budget brand Vivo gained 17% of the market, Huawei 16%, and Apple dropped to 15%. This reflects the growing competition from local manufacturers in one of the world’s largest smartphone markets.
Experts attribute Apple’s fall to a lack of competitive innovation. In particular, analysts point to shortcomings in the integration of artificial intelligence in the latest iPhone models, which is especially important for Chinese consumers looking for advanced technologies.
“This is Apple’s worst annual result in China,” said Canalys analyst Toby Zhu. “The premium market is increasingly under pressure from Huawei’s new products, the rise of foldable phones and loyalty to Android brands.”
Huawei regains ground
Huawei, which has suffered significant losses due to US sanctions in the past, has managed to return to the premium market with new smartphone models with local chips. In the fourth quarter of 2024, Huawei’s shipments increased by 24%.
Apple, which rarely resorts to discounts, organised a promotion in China this year from 4 to 7 January. As part of the promotion, prices for iPhone 16 models were reduced to 500 yuan ($68.50). Chinese e-commerce platforms such as Tmall also offered discounts of up to 1,000 yuan ($137).
Records of local brands
Among the leading manufacturers, Xiaomi showed the highest growth, up 29% in the fourth quarter. Oppo and Vivo also showed growth, increasing their shipments by 18% and 14% respectively.
In 2024, total smartphone shipments in China grew by 4% to 285 million units, signalling the recovery of one of the key markets after several years of decline.
Apple is facing serious challenges in the Chinese market, which is dominated by local players thanks to innovation and flexible pricing. The success of Huawei and Vivo confirms that consumers in China are increasingly choosing products tailored to local needs and technology trends.
For Apple, this is a signal for change if the company wants to regain its share in one of its most important markets.
