Apple Slips from Top Spot to Third in China’s 2024 Smartphone Market

The decline also highlights how the lack of artificial intelligence capabilities in the latest iPhones sold in China, where ChatGPT is unavailable, is diminishing Apple’s competitiveness.

Apple was dethroned as China’s biggest smartphone seller in 2024, with local rivals Vivo and Huawei overtaking the iPhone maker after its annual shipments in the country declined by 17%, according to data from research firm Canalys.

It was Apple’s largest-ever annual sales decline in China, experiencing a contraction in all four quarters. The most significant drop occurred in the final quarter, with a decrease of 25%, according to data from research firm Canalys.

Throughout the year, budget smartphone maker Vivo captured a 17% market share in China, followed closely by premium rival Huawei with 16% and Apple with 15%. This data highlights the increasing sales pressure Apple faces from domestic manufacturers in one of its largest global markets.

Apple’s premium market position is facing multiple challenges, including Huawei’s relentless flagship releases, the growing popularity of domestic foldable phones in high-price segments, and the technological innovations of Android brands like Xiaomi and Vivo that are building strong consumer loyalty.

The iPhone maker has turned to rare discounts to stimulate sales. The company launched a four-day promotion in China from Jan 4-7, offering price cuts of up to 500 yuan (S$94) on its iPhone 16 models through its official channels.

In 2024, annual smartphone shipments in China increased by 4% year-on-year, reaching 285 million units.

Among the top five vendors, mostly budget-focused Xiaomi posted the strongest growth with a 29 per cent increase in fourth-quarter shipments, while Oppo and Vivo recorded gains of 18 per cent and 14 per cent respectively, according to the Canalys data.