Apple has been dethroned as the top smartphone seller in China in 2024. The company has been overtaken by local rivals Vivo and Huawei. According to a Cnalys report, the company’s annual deliveries to the country fell by 17%.
The company also resorted to discounts, including the latest model released on the market PHOTO Shutterstock
For the full year, budget smartphone maker Vivo achieved a 17% market share in China, followed by Huawei with 16% and Apple with 15%, according to a report published by Canlys on Thursday.
The company’s decline involved contraction in all four quarters, including a 25 percent decline in the last quarter, according to data cited by Reuters, and shows how factors such as the absence of artificial intelligence capabilities on the latest iPhones sold in China , where ChatGPT is not available, affects Apple’s competitiveness.
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“It is Apple’s worst annual performance in China“, analyst Toby Zhu pointed out.
The Canalys analyst also explained that “Apple’s position in the premium market faces multiple challenges: Huawei’s continued flagship launches, the proliferation of domestic foldable phones in high-end segments, and Android brands like Xiaomi and Vivo building consumer loyalty through technological innovation”.
According to Reuters, Apple previously enjoyed four years of steady growth following US sanctions that placed Huawei on a target list in 2019, restricting its access to US technology.
Huawei has made a strong comeback in the premium segment since August 2023, when it launched new phones with locally manufactured chips. 2024 saw a 24% increase in shipments in the fourth quarter, although Apple even resorted to discounts to boost sales.
Apple launched a four-day promotion in China from January 4 to 7, offering price discounts of up to 500 yuan ($68.50) on iPhone 16 models through its official channels. Major Chinese e-commerce platforms have followed suit with their own promotions. Alibaba’s Tmall seller has announced discounts of up to 1,000 yuan ($137) on the latest iPhone 16 series devices.
Among the top five vendors, Xiaomi, mainly focused on cheaper variants, saw the strongest growth with a 29% advance in shipments in the fourth quarter, and Oppo and Vivo saw increases of 18% and 14% respectively %, according to Canalys data.
Annual smartphone shipments in China in 2024 grew 4% year-on-year.
